Santos Ltd top S&P/ASX200 gainer on Harbour Energy takeover bid

Shares in Santos Ltd (ASX: STO) have rocketed up 21.2% to $6.14 at the time of writing – a 52-week high for the stock and the S&P/ASX 200 top gainer of the day – as news of a $13.53 billion takeover offer from Harbour Energy gains traction with investors.

The Harbour Energy offer values Santos at $6.50 per share and Harbour plans to fund the takeover through a combination of debt and equity, with J.P. Morgan and Morgan Stanley underwriting US$7.75 billion of debt.

Santos last year rejected a US$9.5 billion takeover offer from Harbour, with Harbour also approaching Santos with takeover offers on two other occasions.

Santos produces natural gas for Australian, Indonesian and other Asian markets, with an oil and liquids business in Australia also.

Santos reported a 21% increase in revenue to $3.17 billion and an underlying NPAT of $336 million when it announced its FY17 results in February, with today’s share price almost double its $3.85 price at this time last year.

Harbour Energy says it will “utilise Santos’s core assets and capabilities as a platform for growth in Australia, Asia and the global LNG sector”.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.