Argentina's Pluspetrol to Buy Apco Oil and Gas for $427 Million


BUENOS AIRES, Oct 3 (Reuters) - Privately held Pluspetrol Resources Corp has agreed to buy Apco Oil and Gas International Inc for $427 million, the companies said on Friday, sending Apco shares jumping as much as 18 percent.

Under the terms of the agreement, Apco shareholders would receive $14.50 per share, representing a 14.7 percent premium to Apco's closing price of $12.64 on Oct. 2.

Apco's leap on Friday was its biggest one-day gain in 10 months.

The deal is subject to approval by shareholders of Apco, which has interests in Argentina and Colombia.

Argentina's Pluspetrol has operations in Argentina, Peru, where it is the lead producer of oil and gas, Bolivia and Angola.

WPX Energy Inc, which owns a 69 percent controlling interest in Apco, supports the deal, Apco said in a statement.

The stock rose 14.2 percent to $14.44 at midday after hitting a high of $14.90 earlier in the session.

(Reporting by Eliana Raszewski; Editing by Richard Lough and Jeffrey Benkoe)


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.