Santos (ASX:STO) is unlikely to attract a competing bid for its proposed takeover from a consortium led by XRG, a unit of Abu Dhabi National Oil, given the significant premium already offered, according to a Monday report by the Australian, citing MST Marquee.
Under the proposed deal, XRG will acquire all of the firm's ordinary shares on issue for $5.76 per share via a scheme of arrangement.
On Monday, the company said it plans to recommend that shareholders vote in favor of the proposed deal in the absence of a superior proposal, if it reaches acceptable terms for a scheme implementation agreement with the consortium.
Only the Abu Dhabi National Oil company would be willing to pay such a premium, MST Marquee said.
However, the deal faces multiple regulatory hurdles, with Australia's Foreign Investment Review Board (FIRB) seen as the most significant, MST Marquee added.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.