Shares Oil and Gas of Nexus Energy Powered Higher
Shares in oil and gas minnow Nexus Energy Ltd have powered higher, despite the company dismissing speculation it’s engaged in takeover talks with Royal Dutch Shell.
Shares in Nexus closed up seven cents, or 23 per cent, at 37.5 cents, after a rollercoaster day’s trade sparked by rumours it was being eyed by the energy giant.
Nexus shares spiked as high as 39.5 cents, up nearly 30 per cent on the day, but fell back a little after it told the market there were no takeover talks underway.
“Nexus advises that it has not been approached by any party, nor is in discussions with any parties in respect of a takeover of the company,” it told the stock market.”
In a note to clients, Hartleys upgraded the stock to a speculative buy.
“Whilst it is clear that the takeover angle is invalid, an approach by Shell for some of Nexus’ assets would make sense,” Hartleys said.
The trading interest in the company came after The Australian newspaper reported Nexus shareholders were said to have been sounded out about a $480 million takeover bid.
Although it was not stated who was behind the move, industry sources said the prime candidate was Shell, the newspaper reported.
Nexus’s market capitalisation is about $292 million.
At the mooted takeover price, shares in the company would sell for about 50 cents.
Key: stock predictions on nexis inc and oil
Comments
.: Sponsor Links :.