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Natural gas

ENI Outbids Amerada Hess for UK's Lasmo in $3.97 Billion Deal

Strategic Insights

— 1 min read

ENI, the Italian oil exploration and production company, has won the takeover bid for the UK-based offshore oil company Lasmo with a cash offer of $3.97 billion. Lasmo's chairman, Anthony Hitchens, has recommended the ENI bid, citing its 12% premium above the company's Wednesday closing price. The deal is expected to strengthen ENI's position in its core markets of North Africa and the North Sea, with CEO Vittorio Mincato stating that it will increase the company's productive output to 1.5 million barrels a day.

Key Takeaways:

  • ENI outbid Amerada Hess for Lasmo with a $3.97 billion cash offer, a 12% premium above the company's Wednesday closing price.
  • The deal is expected to increase ENI's productive output to 1.5 million barrels a day and strengthen its position in core markets of North Africa and the North Sea.
  • Lasmo's chairman, Anthony Hitchens, recommended the ENI bid, citing its value to shareholders.
  • ENI's core business is oil exploration, production, and power generation, with operations in over 70 countries.
  • ENI is the world's sixth-largest oil company by market capitalization.
  • Lasmo has enjoyed a ten-fold increase in profits for the first two quarters of the year, largely due to the rapidly rising price of crude oil.
  • The deal has already had a positive impact on Lasmo's share price, with a 13% increase since the news of the potential purchase.

Statistics:

  • The ENI bid for Lasmo is worth $3.97 billion in cash.
  • The bid represents a 12% premium above Lasmo's Wednesday closing price of $2.95 per share.
  • The deal is expected to increase ENI's productive output to 1.5 million barrels a day.
  • Lasmo's profits have increased ten-fold for the first two quarters of the year.
  • ENI is the world's sixth-largest oil company by market capitalization.
  • Lasmo's share price has increased by 13% since the news of the potential purchase.

Sources:

  • UPI, "ENI pulls ahead in Lasmo takeover bid," Dec. 22.
  • (c) 2000 UPI All rights reserved. Copyright 2000 by United Press International. News Provided by COMTEX (http://www.comtexnews.com)

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