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vern117on Dec 09, 2008 2:32pm
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The Globe and Mail reportskc824
The Globe and Mail reportskc824Globe says Oilexco shares leap on buyout rumours
2008-12-09 07:40 ET - In the News
The Globe and Mail reports in its Tuesday edition that shares in Calgary-based Oilexco surged on speculation that a number of major firms are interested in buying the troubled North Sea oil producer. The Globe's Norval Scott wites that Oilexco was worth almost $5-billion earlier this year. The company's market capitalization since has plummeted to less than $500-million because of falling commodity prices and a failed attempt to win financing for future expansion projects. Analysts say Britain's BG Group PLC, Danish firm Maersk Oil, Germany's E.ON AG, United Arab Emirates-based Taqa or Calgary-based Nexen Inc. may all be interested in acquiring Oilexco. While a sale is one possibility, Oilexco management may also consider selling off assets, subleasing rigs to other explorers or securing other forms of debt financing in an attempt to ride out the storm, said FirstEnergy Capital Corp. analyst Martin Molyneaux. Oilexco officials declined to comment. The company's shares rose 50 cents Monday to $1.95 on the Toronto Stock Exchange.