Repsol Board Reportedly Approves Bid For Talisman Energy

(RTTNews) - The board of directors of Repsol SA (REPYY.PK), which met on Monday, has approved the Spanish oil company's bid for struggling Canadian firm Talisman Energy Inc. (TLM.TO, TLM), reports said.

Talisman had confirmed Monday that it is in talks with Repsol about a "potential corporate transaction". Talisman has been approached by several other parties regarding various transactions.

Media reports last week indicated that Repsol was seeking to acquire Talisman in a deal that would value the company's equity at up to C$8 billion, or $6.90 billion. Repsol executives reportedly traveled to Calgary, Alberta and were negotiating a takeover bid for Talisman Energy in a range of C$6 to C$8 per share.

Repsol is said to have dropped a plan to acquire Talisman in August 2014 after concluding due diligence on the company. However, recently talks were revived, as the Spanish company seeks to boost its presence in North America through acquisitions. The fall in oil prices to fresh five-year lows has made companies like Talisman more attractive targets.

TLM closed up 19.4 percent at $5.12, and gained around 20 percent in the extended trade. TLM.TO added 18.5 percent to C$5.97.