Yahoo Finance Privately-held Sabine Oil to take over Forest Oil
Privately-held Sabine Oil to take over Forest Oil and create 1 large Texas oil and gas company
NEW YORK (AP) -- Sabine Oil & Gas said Tuesday that it plans to take over Forest Oil Corp. and create one large oil and gas company in Texas.
Shares of Forest Oil soared nearly 15 percent after the deal was announced. Sabine Oil is privately held.
The combined company will keep Sabine Oil's name and will trade on the New York Stock Exchange under the ticker symbol "SABO" after the deal closes, which is expected by the end of the year. Forest Oil will become a subsidiary of Sabine Oil.
The two companies did not say how much the deal is worth. Sabine Oil's unit holders will own about 73.5 percent of the new company and Forest Oil shareholders will own about 26.5 percent.
The new company will be based in Houston where Sabine Oil is headquartered. Forest Oil is based in Denver.
Sabine Oil CEO David Sambrooks will be CEO, chairman and president of the new company. The board will be made up of six directors from Sabine Oil and two from Forest Oil.
Forest Oil shares rose 26 cents or 14.5 percent to $2.05 in midday trading Tuesday. Its shares are down nearly 52 percent in the past year.
