According to a #Bloomberg reporter’s tweet on Wednesday, activist investor Elliott Management is setting out to dissolute Noble Energy Incorporation’s $5 billion sales to energy company Chevron Corp.
Despite the revelation of Elliott’s stake in Noble Energy not being out, the Federal Trade Commission’s Hart-Scott-Rodino Act has granted the firm early termination. The grant has an essence when an investor buys shares higher than a certain threshold and decides to talk about topics like management changes or strategy.
After Wednesday’s tweet, #Chevron shares went up 2.2%, while Noble shares climbed 2% in New York.
In a statement, Chevron spokesman, Branden Reddall, said that they believe the offer represents a fair value for the business and that the transaction will create long-term value for stakeholders of both the companies. Additionally, the deal will close in the fourth quarter this year and would increase Chevron’s exposure to the Denver-Julesburg Basin in Colorado.
With the deal being settled at 7.5% premium, it’s made only after a 60% loss of stock value from the year’s beginning, after the spread of #coronavirus pandemic and subsequent fall of oil prices.
#Elliott continues to find its way through changes for better positioning of the company to recover from the oil price slumps.