Santos Falls After Rejecting Harbour Offer as Too Low, Too Risky

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Santos Ltd. plunged the most since 2016 after rejecting Harbour Energy Ltd.’s $10.9 billion final offer and terminating talks, saying its proposal was too low and too risky, Bloomberg News reported. The Australian oil and gas producer said Tuesday its independent directors, managing director and chief executive officer unanimously rejected the proposal because it didn’t represent the full value of the company, as well as being too complex and high-risk. Oil prices and shares of its domestic peers have rallied 14 percent and 18 percent, respectively, since the initial proposal, Santos said. “The board obviously thinks that in their hands there is more to come than what Harbour is offering,” David Lennox, a Sydney-based resources analyst with Fat Prophets said by phone. Read more.