Norwegian energy and aluminium group Norsk Hydro has agreed to buy US Spinnaker Exploration Co for $2.45 billion in cash to expand oil and gas output and add potential for new discoveries, it said on Monday.
Hydro offered $65.5 per share, a 34 percent premium over Houston-based Spinnaker's Friday closing price of $48.75. It would pay $2.45 billion in cash for the shares and assume $110 million in debt.
Hydro Chief Executive Eivind Reiten called the acquisition, which would add total reserves of 129 million barrels, "a very important step in our growth strategy".
The take-over would bring holdings in 350 licences, including a quarter of the Front Runner field already in production. Spinnaker now produces 23,000 barrels of oil equivalent per day, which is due roughly to double to 50,000 boed by 2008.
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