An investor in Talisman Energy has filed suit against the Alberta based company to stop a proposed $8.3 billion takeover by Spain’s Repsol.
James Baqleh filed suit in New York’s Supreme Court on January 20 to stop the takeover, claiming Repsol’s offer is “grossly inadequate” and that investors would be “irreparably damaged” by the deal.
In his suit Baqleh said Talisman’s board has “inexplicably chosen to sell itself for a fraction of its net worth” instead of trying to weather low oil prices through asset sales and “financial prudence.”
Talisman said it believes the lawsuit is without merit.
“We continue to respect and welcome the opinions of all our shareholders,” a Talisman spokesman said.
Repsol has not commented on the lawsuit.
Repsol agreed to purchase 100 percent of Talisman’s shares for $8.3 billion on December 16, a 56 percent premium over the company’s $5.33 billion market value at closing the day before the deal was announced.
The company will also take on $4.7 billion of Talisman’s debt.
The deal is expected to close in the middle of 2015.