By Lisa Kerner
Charlotte, N.C., Dec. 14 - Exxon Mobil Corp. said it will boost its position in the development of unconventional natural gas and oil resources with the acquisition of XTO Energy Inc. in an all-stock deal worth $41 billion, including debt of $10 billion.
Both companies' boards of directors have approved the deal, which is expected to close in the second quarter of 2010.
ExxonMobil will issue 0.7098 common shares for each common share of XTO, representing a 25% premium for XTO stockholders based on Friday's closing stock prices.
The combination is part of ExxonMobil's ongoing evaluation of investment opportunities to create value for its shareholders and meet long-term global energy demand growth, according to an ExxonMobil news release.
J.P. Morgan Securities Inc. is advising ExxonMobil, and Barclays Capital Inc. and Jefferies & Co. Inc. are advising XTO.
ExxonMobil is an Irving, Texas, oil and gas company.
XTO Energy is a Fort Worth-based energy firm.
| Acquirer: | Exxon Mobil Corp.
|
| Target: | XTO Energy Inc.
|
| Announcement date: | Dec. 14
|
| Transaction total: | $41 billion
|
| Price per share: | 0.7098 shares of Exxon
|
| Expected closing: | Second quarter of 2010
|
| Stock price for acquirer: | NYSE: XOM: $72.83 on Dec. 11
|
| Stock price for target: | NYSE: XTO: $41.49 on Dec. 11
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
