UPDATE 2-Nexen shares jump on report Total mulling bid

(Adds closing share price)

CALGARY, Alberta, Dec 2 (Reuters) - Shares in Nexen Inc (NXY.TO) rose 9.3 percent on Tuesday after a report said that French oil major Total SA (TOTF.PA) is poised to make a C$19.7 billion ($15.8 billion) takeover offer for Canada's No. 4 independent oil explorer.

The Financial Times reported on its website on Tuesday that Total's board of directors was meeting to approve a C$38 per share offer for Nexen.

Nexen shares, which have gyrated in recent weeks on rumors that Total was mulling a bid, rose C$2.03, or 9.3 percent, to C$23.88 on a heavy volume of 26.3 million shares, the most active issue on the Toronto Stock Exchange on Tuesday.

In earlier trading the shares reached as high as C$29.10.

The FT report said Total has secured financing for the offer from five banks.

Total, which has made two acquisitions in Canada over the past three years, declined to comment on the report, saying it does not comment on rumors.

Nexen issued a statement on Tuesday at the request of the Toronto Stock Exchange. The company said it wasn't aware of any corporate developments to account for the activity in its shares and its policy is not to comment on rumors and speculation.

However, the company's chief executive said in October that Nexen could put itself up for auction if it becomes the target of an unsolicited takeover bid.  Continued...