Seeking Alpha

EPL downgraded at multiple firms which see no bids competing with EXXI

  • EPL Oil & Gas (EPL +0.7%) is downgraded by at least a half-dozen sellside firms which say investors should not expect competing bids for Energy XXI's $39/share offer.
  • Stifel, for example, cuts shares to Hold from Buy, seeing no meaningful probability for competing bids after EXXI's "full and fair" offer; the deal is friendly, it contains a high cash component (65%), a breakup fee is involved, and there is a limited number of buyers for shelf production.
  • The firm also cites a fairly narrow arb spread (1.1% to the cash/stock offer) and risk of additional downside to EXXI stock in the near-term given the acquisition metrics.
From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector