surged Monday after
agreed to buy the oil exploration and production company for $2.45 billion.
The cash purchase price comes out to $65.50 a share. In recent trading, Spinnaker was up $16.20, or 33%, to $64.95, vaulting past its 52-week high of $49.70.
The acquisition was approved by each company's board and remains subject to approval by Spinnaker's shareholders and various regulatory agencies in the U.S. It is expected to be completed in the fourth quarter of 2005.
Spinnaker, based in Houston, does oil exploration and production primarily in the Gulf of Mexico. It has annual revenue of about $300 million and operated 176 wells as of the end of last year.
"This transaction allows Spinnaker Exploration shareholders to realize substantial and immediate value at an attractive premium and gives Spinnaker Exploration employees the opportunity to join a new, successful team," Spinnaker said in a release.