Papua New Guinea-focused Oil Search rejects Santos bid

Oil Search said the offer was not in the best interests of shareholders.

MELBOURNE: Oil Search rejected an unsolicited takeover proposal from Santos Ltd that valued the Papua New Guinea-focused oil and gas producer at A$8.8 billion ($6.5 billion), the two companies said on Tuesday.

Oil Search said the offer was not in the best interests of shareholders, but its shares rose 7% after Santos said it still wanted to pursue talks to create a group that would rival Australia's top independent gas producer Woodside Petroleum in market value.