Novus, Medco in preliminary talks over merger plan

Australia's mid-sized energy company Novus Petroleum (NVS.AU) has revealed that preliminary merger talks occurred with hostile Indonesian bidder PT Medco Energi Internasional over the sale of potential assets, Australian Financial Review reported on Tuesday.

Novus Managing Director Bob Williams told the newspaper there was a "brief discussion" between the two companies but talks never got beyond the preliminary stage.

But with Medco, an Indonesia-focused domestic oil company, and Novus, an internationally focused gas company, there don't appear to be many synergies, Williams said.

Novus' shares closed Monday at A$1.84, well above the A$1.74-a-share cash offer made by Medco, reflecting expectations that a bid to rival Medco's A$326 million offer remains possible.(*)