Medco appoints CSFB, UBS bond lead managers

Indonesia's Medco Energi International has appointed Credit Suisse First Boston and UBS as lead managers for its possible U.S. dollar-denominated bond, bankers was quoted by Dow Jones as saying.

The bond is linked to Medco's planned takeover of Australia's Novus Petroleum Ltd.If the takeover doesn't go ahead, neither will the bond, the bankers say.

Although there has been talk that the bond could be for US$200 million, one banker said, "It will be much less than that."

The choice of lead managers was widely expected since the pair led Medco's last foray into the international bond market in May 2003. That deal was for US$250 million in seven-year bonds.

Medco Energi has made a A$1.74-a-share offer for Novus. An independent expert has valued Novus at A$1.96-A$2.75 a share, and Medco also faces a rival bid from Sunov Petroleum Pty., the bidding vehicle of Novus Chief Executive Bob Williams and Hong Kong-based Crosby Capital Partners. That bid values Novus at A$1.77 a share.

Novus shareholders are expected to respond to the bids in April after they get a formal statement from directors on the Sunov proposal.(*)