InterOil Gets Bid, Threatening Oil Search Deal

InterOil Corp. on Thursday said it received an unsolicited takeover proposal from an unnamed party, potentially disrupting Oil Search Ltd.'s deal to acquire the midsize energy company.

The value of the proposal wasn't disclosed, but shares of InterOil rose 4.6% to $44 in light premarket trading.

InterOil said its board is reviewing the proposal, which it termed conditional and nonbinding, and said it continues to recommend the Oil Search deal.

Australia's Oil Search in May agreed to buy InterOil for $2.2 billion in a move to consolidate natural-gas developments on Papua New Guinea. The deal valued InterOil at $40.25 a share, a 27% premium at the time.

Earlier this month, U.S.-listed InterOil successfully fought off a move by founder and former Chief Executive Phil Mulacek to seat himself and four others on the company's board. Mr. Mulacek has urged shareholders to reject the Oil Search offer.

InterOil said its shareholders will vote on the Oil Search takeover on July 28.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

June 30, 2016 08:55 ET (12:55 GMT)

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