Three strategic investors eyeing Medco

Two Southeast Asia-based, and one U.S.-based oil and gas companies are vying for a stake at PT New Link Energy Resources Ltd, that owns 67.83 percent stake at local oil and gas publicly-listed company PT Medco Energy International Tbk, Koran Tempo daily reported on Friday.

Medco president John S. Karamoy revealed that the three candidates are competing to take over stake belonging to Credit Suisse First Boston (CSFB), which shares the ownership of New Link Energy with the Panigoro family.

Karamoy said that there were actually many investors interested in becoming the strategic partners of Medco, but after bidding process, five companies were selected, and the five were then shortlisted again, three came as the potential buyers.

He said the criteria of the new strategic investors must be companies with extensive experience in the oil and gas exploration activities, not just any company with interest in the oil and gas industry, not even an investment bank.

Two Southeast Asia companies that have been rumored to have the potentials to acquire New Link Energy stake are Petronas of Malaysia and PTT of Thailand.

An analyst at a foreign securities house also mentioned Singapore Petroleum Company (SPC) as another candidate, but others said that SPC's chance was slim because its business was mainly in the downstream level. (*)