Dow Jones Just Corrected to Read $8 Billion
CORRECT: Takeover Speculation Drives Addax Petroleum Shares Up >AXC.T
Last Update: 6/8/2009 3:46:07 PM
("Takeover Speculation Drives Addax Petroleum Shares Up" published at 12:22 p.m.
EDT incorrectly stated in the second paragraph that Sinopec is reportedly working
on an US$8 million bid for Addax Petroleum. The bid is reported to be worth US$8
billion. The correct version follows.)
By Jennifer Walter
Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--Speculation about a possible takeover of oil company Addax
Petroleum Corp. (AXC.T) is driving its share price higher.
Addax is up 9.4% after a story in the South China Morning Post reported that
China Petroleum & Chemical Corp. (SNP), known as Sinopec, is working on an US$8
billion bid for Addax, which is an oil and gas exploration company operating in
the Middle East and West Africa.
Addax said in a press release that it has been in discussions with third parties,
but it didn't elaborate. It also said it won't comment further unless a
transaction is finalized.
Raymond James analyst Rafi Khouri told Dow Jones that he thought Addax would be a
good fit for the Chinese company. Khouri said the Chinese are trying to expand
their access to oil and gas, and have shown some interest in West Africa.
"My personal view is that I would not be surprised if Addax were to be acquired
at some time in the next 12-24 months," Khouri said. "Whether or not that will
happen now, or if there's any truth to the speculation, is hard to say."
Khouri doesn't own Addax shares and he said Raymond James doesn't have an
investment-banking relationship with Addax.
Addax officials weren't immediately available for comment.
In Toronto Tuesday, the stock is up C$3.40 to C$39.40 on 2.3 million shares.
-Jennifer Walter, Dow Jones Newswires, 416-306-2028 jennifer.walter@dowjones.com
(END) Dow Jones Newswires
June 08, 2009 15:46 ET (19:46 GMT)
