Pearl Exploration & Production Ltd., a Canadian oil and natural-gas explorer, climbed to a four-month high in Stockholm trading after the Economic Times of India said ONGC Videsh Ltd. is in talks to buy a Canadian oil company.

Pearl rose as much as 2.3 kronor, or 15 percent, to 17.5 kronor, which would be the highest close since Jan. 3. The stock traded at 16.6 kronor as of 1:17 p.m. local time, valuing the Calgary-based company at 3.14 billion kronor ($530 million).

ONGC Videsh is negotiating a possible takeover of a mid- sized Canadian oil producer whose assets include oil sands, the Economic Times of India reported on its Web site, without saying where it got the information. The target company is listed on Canadian and Swedish exchanges, the newspaper said.

Calls placed by Bloomberg News to Pearl Exploration outside business hours weren't immediately returned. Calls to ONGC Videsh also weren't returned.

Source: Bloomberg