Talisman CEO lauds Canada's 'yield sign' on foreign takeovers

Mon Dec 10, 2012 6:41pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Canada should have domestic firms with global ops -Kvisle

* Talisman not seeking buyers

* Sees shift to more joint ventures with foreign companies

By Jeffrey Jones

CALGARY, Alberta, Dec 10 (Reuters) - The chief executive of Talisman Energy, which had been seen as a possible takeover target for an Asian state enterprise, on Monday praised Canada's new restrictions on purchases by foreign state-owned entities.

With Canada's approval of the $15.1 billion takeover of Nexen Inc by China's CNOOC Ltd, it is important that the country keep some homegrown oil companies with global reach, such as Talisman, CEO Hal Kvisle told reporters after speaking to a business audience.

Calgary-based Talisman had drawn speculation as the next possible target of an Asian state enterprise due to a structure similar to that of Nexen and a weakened share price.

The new foreign investment guidelines issued on Friday appear to make such a transaction much more difficult. Under the new rules, future bids for control of oil sands businesses by state-owned enterprises would be allowed only in exceptional circumstances. It is widely expected that other big takeovers by foreign state-owned enterprises would also be much harder now.

"Like Nexen, Talisman's biggest asset in Canada is the organization and the people in the corporate headquarters," Kvisle said. "I think it's very much in Canada's interest to have some strong international players that continue to be headquartered and financed and managed where the innovative thinking comes out of Calgary."   Continued...