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Oil Search board faces fury amid CEO exit, secret merger offer
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The board of energy giant Oil Search is facing mounting pressure over the shock departures of two senior executives in less than a year and accusations it has deliberately misled the market.
The $8 billion ASX-listed oil and gas company was forced to issue a “clarification” to comments made by chairman Rick Lee this week after he wrongly told an investor briefing that Oil Search had not received any approaches from prospective suitors. Within 24 hours, larger listed rival Santos released documents showing it had made an offer on June 25 to merge with Oil Search to create a $22 billion combined entity.
Oil Search Rejects Santos Plan for $16 Billion LNG Giant
James Thornhill, Bloomberg News A Santos Ltd. pilot well operates on a farm property in Narrabri, Australia, on Thursday, May 25, 2017. A decade after the shale revolution transformed the U.S. energy landscape, Australia â poised to overtake Qatar as the worldâs biggest exporter of liquefied natural gas â is experiencing its own quandary over natural gas. Photographer: Brendon Thorne/Bloomberg , Bloomberg
(Bloomberg) Oil Search Ltd. rejected a takeover approach from Santos Ltd. that would create a A$22 billion ($16 billion) liquefied natural gas export giant with operations across Australia and Papua New Guinea.
Oil Search rejects Santos merger deal
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Oil Search has knocked back a $23 billion merger proposal from rival Santos to create a âregional championâ in oil and gas, but is already coming under pressure from investors to engage with its suitor.
In news that contradicts Oil Search chairman Rick Leeâs statement on Monday that it had received no takeover approaches, Santos confirmed on Tuesday that it had offered an all-scrip deal to merge with Oil Search last month, but the proposal was rejected by Oil Searchâs board and its advisers.
Oil Search chairman Rick Lee fronted investors and analysts on Monday - and wanted to clarify something on Tuesday morning.