Atlas Energy Chevron acquisition under numerous inspections

Submitted by ChattyL on Sat, 11/13/2010 - 02:42.

Atlas Energy is a 40-year old company depending in the United States. They develop natural gas in the Appalatian region. Chevron offered Atlas Energy $ 4.3 billion for their business. The Board of Directors at Atlas Energy accepted the offer. Two shareholder-representative corporations have launched investigations into the offer, however.

What Chevron will probably pay for Atlas Energy

Atlas energy has been traded in the last few months. It had been $30 to $35 for a share. Over 9,000 natural gas wells are controlled by Atlas Energy which is an energy development company. Chevron, Texaco and CalTex are all used to distribute Chevron product. Fuel, additives, oils and other products are all a part of these products. Chevron announced today that they have reached an agreement to pay about $43 a share to acquire Atlas Energy.

Investigating Atlas Energy getting bought

Chevron and Atlas Energy are both public businesses. This means that standards in acquisition agreements are expected to be held up. Shareholder acquisition agreements are investigated by 2 major law firms. Both have decided the Chevron/Atlas Energy offer needs to be investigated. These corporations claim that Atlas Energy didn't "properly shop around" to get the "true value" of Atlas Energy for its shareholders. Some analysts claim that a fair price for Atlas Energy would are between $47 and $65 per share. A payday loans no fax doesn’t even compare to that difference. Chevron shares went down 88 cents since the buyout offer when Atlas Energy shares went up over $43 a share.

Deciding the worth of mergers

It is really hard to figure out what the buyouts and mergers values really are. The owners of a company are stockholders in publicly held companies. Atlas Energy has been trading for $30 a share. It is worth more than that to many different stockholders though. Determining the "true" value of a business can often be difficult, since it is situated on a wide variety of factors. If it is found that Atlas Energy has accepted an offer too low, their shareholders could force Chevron to pay more than their initial $4.3 million deal.

Citations

Marketwatch

marketwatch.com/story/rigrodsky-long-pa-investigates-atlas-energy-inc-buyout-2010-11-09?reflink=MW_news_stmp

Barrons

blogs.barrons.com/stockstowatchtoday/2010/11/09/chevron-buys-penn-nat-gas-developer-atlas-energy-in-43b-deal/

 

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