Tullow Oil share price collapse may be overdone - 11 Dec11 Dec 2019 11:25
Tullow Oil share price collapse may be overdone , by David Whitehouse
"Takeover target?
Tullow says it is now open to receiving offers to buy the company. “The market could realise the bloodletting has been overdone,” Islam says. “Given that the reserves under the ground have not changed that much despite the upheaval above ground, rumours of incoming bids may also further drive up the share price.”
A potential buyer would want “a full understanding of the issues Tullow has had,” says London-based energy analyst James Carmichael. “Lack of progress in East Africa and disappointment in Guyana crude quality are likely to complicate negotiations.” France’s Total has a portfolio that overlaps with Tullow’s in Ghana, Kenya, Uganda and Guyana, Carmichael says, so “they clearly know the assets and could move quickly”.
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