UK's Lasmo Shares Rise on Conoco Takeover Rumors

Shares of UK independent oil producer Lasmo increased by 3% in London on Thursday following reports that US-based Conoco was considering a $4 billion takeover bid. The rumors, which surfaced after a similar deal was earlier rumored to be worth $2.4 billion, have sparked interest in the UK's exploration and production sector, with many observers suggesting that the sector is attractive at current low stock market valuations.

Key Takeaways:

• Lasmo's shares rose 3% in London on Thursday, following rumors of a potential $4 billion takeover bid by Conoco.
• The latest reports have Conoco considering a bid worth $4 billion, compared to Lasmo's current market capitalization of less than $2 billion.
• Conoco may be interested in picking up individual Lasmo assets rather than engaging in a full-scale buyout.
• Lasmo has already sold off some marginal properties, including interests in the North Sea and two Algerian blocks.
• Royal Dutch/Shell plans to buy Lasmo's 12.5% stake in Azerbaijan's Inam exploration block.
• Lasmo is also expected to decide in the next few months whether to sell Monument's holdings in Turkmenistan.

Statistics:

• Lasmo's shares rose by 3% in London on Thursday.
• The potential takeover bid by Conoco is worth $4 billion.
• Lasmo's current market capitalization is less than $2 billion.
• Conoco's initial rumored bid was worth $2.4 billion.
• Lasmo has sold off interests in the North Sea and two Algerian blocks.

Sources:

• "OD" (December 21, 1999), p1.
• An unnamed London analyst, quoted in the article, stating that "I must have heard about 50 rumors in the past six months and none panned out.