PetroKazakhstan soars after takeover bid

Shares in PetroKazakhstan Ltd. soared this morning after the Canadian-based oil company became the target of a multi-billion dollar takeover.

China National Petroleum Corp. (CNPC) made a $4.18 billion US bid for the company causing shares to rise 18 per cent.

PetroKazakhstan has its headquarters in Calgary but operates only in the central Asian country of Kazakhstan. The company, formerly known as Hurricane Hydrocarbons, is one of the largest foreign energy companies operating in Kazakhstan.

On the Toronto stock market, PetroKazakhstan shares were up $9.95, or 18.1 per cent, to $64.85 Cdn in midday trading.

PetroKazakhstan is considered a key acquisition intended to boost China's energy supplies.

CNPC is China's biggest oil producer. It is the parent company of PetroChina Co. Ltd., whose shares are traded on stock exchanges in Hong Kong and New York.

A takeover of PetroKazakhstan would mean closer economic ties between China and Kazakhstan. Kazakhstan, which borders China, Russia and the Caspian Sea, is expected to become one of the world's leading oil producers over the next two decades.