Teck Resources Ltd. (
TSX: T.TCK.B,
Stock Forum)of Canada is lining up a cash offer in the region of $85 a share or $4 billion for
InterOil Corp. (
NYSE: IOC,
Stock Forum), according to a Daily Mail report.
InterOil is a vertically integrated oil and gas company with operations in Papua New Guinea.
According to the Daily Mail, Teck’s advisor Bank of America Merrill Lynch already reached an agreement with IOC’s 19.8% shareholder, Chandler Corp., and has held several meetings with the IOC management about transacting a friendly deal.
It could come to fruition soon, the Daily Mail report says.
Teck shares were off 0.12% to $25.90 on Friday, leaving a market cap of $14.7 billion, based on 566.9 million shares outstanding. The 52-week range is $32.30 and $21.11.
Interoil shares were unchanged Friday at $55.15, leaving a market cap of $2.7 billion, based on 48.9 million shares outstanding. The 52-week range is $106.44 and $43.85.