Urals Energy Stock Soars on Deal Rumor

Urals Energy, a London-listed oil explorer focused on eastern Siberia, rose as much as 100 percent after Kommersant said the company may be bought by China Petrochemical, known as Sinopec Group.

Urals closed up 51 percent at 16.25 pence in London, valuing the company at £28.9 million ($44.2 million). The share price has increased more than fivefold in the past two weeks.

Kommersant reported Tuesday that Sinopec Group was in negotiations to buy Urals Energy, citing unidentified people familiar with the talks. Shareholders of Urals will get an offer for all shares by the end of the year at a price of no lower than 50 pence apiece, or about £90 million, the newspaper said.

Urals said Tuesday that "no offer has been made and there can be no certainty that an offer will be made or, if an offer is made, the level at which such offer may be made."