The FT reported that Canadian oil company Nexen (NYSE:NXY) is being courted by France’s Total SA (NYSE:TOT). Total could be preparing a bid for as much as $16 billion for the Canadian company. Total will apparently not make a hostile bid, so it will have to depend on sweet talk and cash to get the deal done. Nexen has said that should it receive a bid from Total, the company would go up for auction to the highest bidder.
Nexen owns 7.23% of Syncrude, the largest oil sands miner in Canada.The synthetic crude produced there is barely viable at a crude price of$50/b. Nexen’s stake amounts to about 10% of the company’s dailyproduction of nearly 250,000 barrels. If crude prices don’t go back toat least $70/b, mining the oil sands barely pays for itself.
Total would like to get into the sands box, but this deal might be too rich at current crude prices.
Paul Ausick
December 3, 2008
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
