Published reports Wednesday suggested that Repsol had hired investment bank JP Morgan to advise it on plans to make international purchases. Calgary-based Talisman is considered to be at the top of that list, Bloomberg reported.
IIROC, the regulatory body that oversees the TSX, halted Talisman shares at mid-morning Wednesday, citing "pending news" from the company.
"Talisman acknowledges that it has been approached by Repsol with regards to various transactions," Talisman said in a statement. "There is no assurance that any transaction will be agreed. Until such time as it is appropriate to make a public announcement on any potential transaction, Talisman does not intend to make any further comment on this matter."
Before the halt of trading Wednesday, Talisman shares were up more than seven per cent to $11.33 on the TSX.