Investors in Gulf Keystone Petroleum Limited (LON:GKP) have again been whipped into a takeover frenzy amid reports that China’s state-backed oil company is considering a bid.
A Bloomberg report, citing sources said to be familiar with the matter, said Sinopec had made an approach. The report also claimed that Gulf Keystone could attract other bidders.
In the summer Gulf Keystone was the subject of a US$300mln takeover approach from fellow Kurdistan oil producer DNO.
At that time Gulf Keystone was working on a major financial restructuring which left the (prior) shareholder register with a minimal stake in the recapitalised company and gave bondholders control.
DNO last month said it would be prepared to consider a cash offer for Gulf Keystone but it would be pitched at a lower price than before.
Competition in the form of a major national oil company is exactly the kind of news that the most optimistic followers of Gulf Keystone have been waiting for.
Whether or not the reports are true does however remain to be seen, as does the potential value of any offer.
In London, Gulf Keystone shares gained 19.66p, 15.5%, to trade at 146.66p each.