Halcon Resources' (HK -2.3%) planned takeover of GeoResources (GEOI -0.7%) gives traders the chance to reap the biggest arbitrage profit in America, Bloomberg says. While shares of both companies have slumped as oil prices have dropped, traders can still secure an annualized 56% profit by buying GEOI on the bet the deal will close by July 31, the report says.
Halcon Resources (HK) agrees to acquire GeoResources (GEOI) for $20/share in cash and 1.932 shares of HK common stock for each GEOI share held. The deal represents total consideration of ~$37.97/share. GEOI +21.3%, HK +4.8% premarket.
GeoResources (GEOI -7.5%) gets hit after Baird cuts it to neutral on valuation. The firm said it sees limited upside in the near-term until the company "further de-risks" its acreage in the Bakken and Eagle Ford shale.
Samson Oil (SSN +6.85%) acquires 90K acres of oil and gas leases in Montana from Fort Peck Energy. The purchase will be made in 3 tranches, with the first 20K parcel set to operate immediately with two wells.