Posted on 11/09/2015 9:47:02 AM PST by bananaman22
Apache Corporation, a Houston-based oil and gas exploration company, says that it has fended off an unsolicited takeover bid, and will continue to defend against follow up attempts to buy out the company.
Bloomberg reported the news, and thus far the bidder has not been identified. The company’s shares jumped on the news, up more than 10 percent during midday trading on November 9. Apache is worth around $18 billion, so if a takeover were to occur, it would be the largest for an independent oil and gas company this year.
(Excerpt) Read more at oilprice.com ...
According to the report, the offer would have valued the company at more than $18 billion, which is roughly where its current market cap is after today’s surge. However, in reportedly rejecting that initial offer, it is unclear if Apache is attempting to gain a higher offer price or to stay independent. Remaining independent is certainly a possibility given the fact that the company is performing relatively well during the downturn. It is worth noting that Apache has $1.6 billion in cash on its balance sheet, an improved leverage profile and recently reported strong third-quarter results, which were highlighted by improved costs and better-than-expected production growth.
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