Spain’s Repsol is reportedly moving closer to making a $4.9 billion offer to buy Calgary-based Talisman Energy.
Repsol and Talisman are having talks in Calgary and could reach a deal by Christmas, the Financial Times said Friday.
Neither company has commented on the reports.
Shares of Talisman jumped nearly 40 percent on the reports.
The acquisition price would be between $6 to $8 per share, nearly double Talisman’s closing price on Thursday.
Talisman confirmed Tuesday it had been approached by a number of companies, including Spain’s Repsol, about “various transactions” but warned the talks do not a guarantee a deal will be made.
Repsol is reportedly looking to acquire assets in North America and may be discussing a purchase of the entire company, Bloomberg said.
Talisman’s plummeting valuation, down 60 percent to $3.9 billion since August, could complicate negotiations.
Repsol attempted to buy Talisman in July but backed out after conducting due diligence.
Weak oil prices, falling North Sea output and concern over debt levels have sent Talisman shares down from $11.85 to $3.74 per share in the last year.
Last month, Talisman warned that problems with its North Sea assets could force the company to take an unspecified amount in write downs during the fourth quarter.