Imperial Energy shares leap on second bid approach

MOSCOW (Reuters) - Imperial Energy Corp IEC.L, already discussing a 1.3 billion pound takeover, said it was in talks with a second unnamed suitor, sending shares in the Russia-focused oil company up almost 8 percent.

British media said the latest approach came from Chinese state-owned Sinopec -- pitching it against Indian state rival Oil and Natural Gas Company (ONGC) (ONGC.BO), which industry sources have said was the first suitor.

"There can be no certainty that any offer will ultimately be made for the company or as to the terms on which any such offer might be made," Imperial said in a statement.

An Imperial spokesman in London declined to identify either possible bidder. Sinopec could not be immediately reached for comment.

At 8:40 a.m., Imperial shares were up 7.5 percent at 1,155 pence per share, valuing the company at 1.18 billion pounds -- a notch below last month's tentative cash offer at 1,290p per share, or 1.32 billion pounds.

A deal with Sinopec, also known China Petroleum & Chemical Corp. (600028.SS), would mark its third major investment in resource-rich Russia.

Sinopec is developing the Sakhalin-3 oil and gas project on the Russian Pacific island by the same name along with state oil major Rosneft (ROSN.MM), and in 2006 it bought a production unit from TNK-BP for $3.5 billion.

ONGC, charged with securing overseas energy resources to power India's booming economy, is similarly a partner in the Sakhalin-1 oil and gas consortium headed by U.S. major Exxon XON.M.

Imperial Energy told Reuters at the end of last year it could sign a strategic deal with a big Russian partner in 2008 to support the company's ambitious growth plans.