Buyout prospect adds appeal

Article Excerpt

IMPERIAL OIL $46.70 (Toronto symbol IMO; Shares outstanding: 856.8 million; Market cap: $40 billion; SI Rating: Average) rose recently, partly in response to Suncor Energy’s takeover bid for Petro-Canada. Low oil prices could prompt ExxonMobil Corp. (New York symbol XOM), which owns about 70% of Imperial’s shares, to buy the 30% it doesn’t already own. Imperial’s reserves should last 25 years. It also runs four refineries, which convert crude oil into gasoline and other fuels. This gives Imperial’s operations some diversity, which will help shield the company from low oil prices. The possibility of a buyout just adds to Imperial’s appeal. Imperial Oil is a buy. buy…

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