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Anadarko takeover by Exxon is unlikely, J.P. Morgan says

  • An Anadarko Petroleum (APC) takeover by Exxon Mobil (XOM), as rumored yesterday, is unlikely, J.P. Morgan says.
  • APC listed its net asset value in March at above $140/share, and the firm thinks management could require a premium to net asset value in a corporate takeover.
  • JPM believes a more likely scenario is APC undertaking accretive transactions, including the monetization of assets.
  • APC -0.8% premarket.
Comments (5)
  • dutchduke
    , contributor
    Comments (53) | Send Message
     
    JP Morgan also rated APC Neutral from $56/share all the way up to $100/share. Same analyst claimed Tronox would put them in the hole for years...

     

    Good call guys! LOL
    12 Jun, 09:26 AM Reply Like
  • treyminator
    , contributor
    Comments (85) | Send Message
     
    While anything is possible, I doubt XOM would seek out APC given APC's unresolved legal issues (Macondo, Tronox). XOM has a number of complex legal issues involving pipeline spill in Arkansas, Vermont's recent suit, legal questions surrounding contracts in Iraq/Kurdistan (not to mention evolving anarchy in that country) and unresolved sanction issues with its activities in Russia. There are plenty of other good independents that XOM could take over (if it desires to do so).
    12 Jun, 10:14 AM Reply Like
  • dutchduke
    , contributor
    Comments (53) | Send Message
     
    APC's legal issues are essentially resolved, hence the upgrades and the stock running up over 30% this year.

     

    XOM does not have any major legal issues to be concerned with and is so diversified the issues you mention are irrelevant.

     

    No other company offers the portfolio of APC, zero.
    12 Jun, 11:07 AM Reply Like
  • cruisintx1
    , contributor
    Comments (4) | Send Message
     
    XOM is moving its corporate out north of Houston. APC is also located out that way. Hmmm.
    12 Jun, 12:27 PM Reply Like
  • T-Rex81
    , contributor
    Comments (32) | Send Message
     
    The real question is do XOM & APC Exec's hunt together. The XTO deal was hammered out over a quail hunt. So the real ? is are they out hunting.
    12 Jun, 07:12 PM Reply Like
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