Australia's Santos rejects $7.2 bn US investment firm bid

Australian energy giant Santos said today it had knocked back a bid by a US-based investment firm worth almost USD 7.2 billion, sending its share price soaring.
Santos, a major Australian natural gas company with interests in Papua New Guinea, said it received a proposal from Harbour Energy at 4.55 Australian dollars per share on August 14.
"The board rejected the approach on the basis that the indicative price was inadequate and the sources of funds were uncertain," Santos said in a statement to the stock market.
"Santos confirms that it is not currently engaged in discussions with, and has not received a current proposal from, Harbour Energy regarding a change of control transaction for Santos."

Harbour Energy's chief executive is Linda Cook, a veteran former senior executive of energy giant Royal Dutch Shell.
Shares in Santos closed 13.01 percent higher to Aus$4.95 in trading in Sydney Thursday.