Oil and gas producer Santos (ASX: STO) has rejected a $6.88 per share takeover offer from Bermuda based Sceptre Partners valuing the company at $7.1 billion. The company said the proposal was considered to be “opportunistic in nature and does not reflect the fair underlying asset value of the company”. In a statement supporting the bid, Scepter said it planned to install former Santos chief executive officer John Ellice-Flint as executive chairman of a privatised company if successful. Santos shares closed up 17% this week. We do not own Santos in the investment portfolio.