NEW YORK (TheStreet) -- Shares of Talisman Energy (TLM) soared 47.47% to $7.55 in morning trading Tuesday after Spanish company Repsol SA agreed to purchase the Canadian company for $8.3 billion in cash.
The deal for the Calgary-based company would almost double Repsol's oil production and increase the potential for further expansion.
Repsol announced Tuesday that the boards of both companies had unanimously approved the deal, and Talisman confirmed this. Repsol agreed to pay $8 per share for Talisman, a 60% premium to the average stock price during the past month, Talisman said. The Madrid-based company would also assume $4.7 billion in debt.
The companies expect the deal to close by mid-2015.
More than 144 million shares had changed hands by 10:31 a.m., compared to the average daily volume of 10,238,600.
Separately, TheStreet Ratings team rates TALISMAN ENERGY INC as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TALISMAN ENERGY INC (TLM) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."