Tullow Oil shares rebounded after Kosmos Energy withdrew its interest in acquiring the company. The potential deal, which would have created a West Africa-focused energy producer, collapsed after Kosmos did not provide a reason for its decision. The news sent Tullow's shares soaring by nearly 3 percent, recovering from a four-year low.
Shares in Tullow Oil , the Irish founded exploration company, staged a tentative rally on Wednesday morning, after slumping more than 11 percent in the previous session after US oil and gas group Kosmos Energy dropped its bid interest in the business. Kosmos’ announcement, which did not give a reason, came less than a week after the companies said they were in early talks for a potential deal that would have created a West Africa-focused producer.
Kosmos’s shares soared in New York on news that it had walked away. Shares in Tullow rallied almost 3 percent to nearly 21 pence in early trading in London on Wednesday, bouncing off a four-year low reached in the previous session. News of Kosmos’s interest last week came days after Rahul Dhir said he was stepping down as chief executive of Tullow.Buying a new car in 2025? These are the best ways to finance it Market sentiment towards Tullow and Kosmos had been volatile on Friday, as investors digested news of the potential tie-up. While Tullow’s shares initially jumped, they soon began to trade lower as investors became concerned about the $4 billion of combined debt the merged entity would have. Tullow’s net debt peaked at $4.8 billion at the end of 2016. The company saw its share price plunge about 85 percent in the 18 months before Mr Dhir took charge in 2020, amid a series of drilling and production disappointments, exits of its then chief executive and exploration director, massive asset writedowns and warnings about potential cash shortfalls. Asset sales and cost-cutting – together with higher oil prices – had helped Tullow pull off a make-or-break $1.8 billion debt refinancing in 2021 and chip away at its debt mountain, but it will still need to refinance about $
Tullow Oil Kosmos Energy Merger Acquisition Shares Oil Industry
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