Morningstar's David Meats Says He Is Not Convinced Repsol-Talisman Buyout Will Go Through

Speaking to Benzinga, Morningstar Analyst David Meats said he is not convinced that Talisman Energy Inc. TLM will accept a bid from Repsol SA REPYY.

He pointed out that Repsol made a bid for Talisman over the summer, and Talisman’s board rejected the offer. But since then, oil prices have plummeted.

“It’s probably that the premium Repsol is offering is higher now than it was before, even though the absolute price is probably lower,” Meats said.

It makes sense to Meats that Repsol would make the offer again, but he’s not convinced that Talisman will go for it because he thinks the company values itself for more than C$6-C$8 -- the price that Repsol is rumored to be offering per share.