UPDATE 1-Repsol to discuss bid for 100 pct of Talisman

Mon Dec 15, 2014 10:10am EST
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(Adds details, background, Talisman statement)

MADRID Dec 15 (Reuters) - Spanish oil major Repsol said it would discuss on Monday a takeover offer for 100 percent of Talisman Energy, which is also being circled by other potential bidders.

Repsol, keen to take advantage of lower valuations for firms exposed to U.S. shale in the face of falling oil prices, said in November it had $10 billion or more available to buy oil and gas targets in OECD countries that offer a 7 or 8 percent investment return.

The potential bid for Calgary-based Talisman, Canada's fifth-largest independent petroleum producer, could be in a range between $6 and $8 per Talisman share, the Financial Times said last week.

This would value the stock at a premium of up to 55 percent to its closing price on Friday and put a price of as much as $8 billion on the company as a whole.

The Spanish oil firm, which hopes to clinch a deal before Christmas, has been searching for an acquisition to fill a funding gap after the seizure of its Argentine business.

A source with knowledge of the matter said Repsol's board would meet at 1500 GMT but it was not clear whether any announcement would be made afterwards. Repsol declined to comment beyond the short statement it sent to Spain's stock market regulator to confirm the meeting.

Talisman had earlier said in a statement it was engaged in discussions with Repsol regarding a potential corporate transaction, without giving any further details.

It also said it had been approached by a number of other parties regarding various transactions. Bloomberg said Canada Pension Plan Investment Board (CPPIB) was weighing a bid . A spokesman for CPPIB declined to comment.

Talisman shares rose 19 percent on news that the Repsol board would meet to discuss a potential bid. (Reporting by Jose Elias Rodriguez and Julien Toyer, additional reporting by Euan Rocha in Calgary; Editing by Pravin Char)