Analysts at Barclays have reinstated their 'Overweight' rating and 67p price target for Tullow Oil PLC (LSE:TLW) following news on October 28, 2022, of the termination of its proposed all-share merger with Capricorn Energy PLC (LSE:CNE, OTC:CRNZF).
In its statement last Friday, Tullow noted that on September 29, the board of Capricorn announced that it had withdrawn its intention to recommend the merger, and the board of Tullow subsequently announced that it had no intention to increase the value of its offer for Capricorn or to elect to implement the combination by way of a contractual offer.
The company said that Capricorn's statement last Friday confirmed that it has provided its consent to the Panel on Takeovers and Mergers to release Tullow from its obligations under the City Code on Takeovers and Mergers to proceed with the combination, and, accordingly, Tullow's board had confirmed that decision.
In a brief comment on Monday, the Barclays analysts said the merger was just an opportunity to accelerate a strategy that Tullow is already successfully executing.
They also reinstated their previous estimates for the FTSE 250-listed oil play and said December 7, 2022, Capital Markets Day (CMD) should provide a refreshed medium-term growth outlook.