STO +0.62% / OSH +4.72%: merger talks between the two oil & gas companies have progressed with Santos revising their initial 0.589/sh offer higher to 0.6275 STO shares for each OSH share. The new number represents around a 17% premium to the close prior to the initial offer and would see Oil Search shareholders own 38.5% of the combined unit. The Oil Search board looks set to recommend the offer with 4 weeks of due diligence now underway. We like the deal as Santos shareholders, the combined group would launch into the top 20 oil & gas companies globally, making it easier to access capital and grow.
MM is bullish STO
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