The Oil Search Ltd (ASX: OSH) share price will be one to keep an eye on Tuesday.
This follows the release of another announcement this morning in what has been an eventful week for the energy producer.
What is happening with the Oil Search share price?
On Monday the Oil Search share price came under pressure after it announced the surprise exit of its CEO Dr Keiran Wulff.
According to the release, Dr Wulff has resigned for health reasons after managing a long-term medical condition which has recently deteriorated.
However, in addition to this, the company revealed that it had been in discussions with Dr Wulff following the receipt of recent concerns and complaints about his behaviour. No details were given about the complaints, other than Dr Wulff allegedly behaved in a manner that was not consistent with the standards expected by the Board.
Takeover offer rejected
While the Oil Search share price was expected to continue to tumble lower on Tuesday following a sharp decline in oil prices overnight, an announcement released this morning could potentially support its shares.
According to today’s release, Oil Search has recently received a confidential non-binding and indicative change of control proposal.
That proposal has been carefully assessed by its Board, Senior Management (excluding Dr Wulff), and advisers Goldman Sachs and Macquarie Capital.
However, following that assessment, the proposal was rejected as it was determined to not be in Oil Search shareholders’ best interests on the terms and value proposed.
Unfortunately, no details were provided in respect to what the offer price was. But if it were at a 20% premium to the current Oil Search share price, it would be somewhere in the region of $4.40 per share.
Investors may now be hoping that the unnamed suitor returns with a better offer in the near future.