Thursday, November 11, 2010

Queries being asked about Atlas Energy buyout by Chevron

Atlas Energy is a 40-year old business based in the United States. They develop natural gas within the Appalatian region. A publicly-held company, Atlas Energy has received a buyout offer from Chevron valued at $ 4.3 billion. Two law firms have launched investigations to the deal. Both of these firms are shareholder-representative firms.
What Atlas Energy is worth to Chevron
Atlas Energy has been trading at around $30 to $35 a share for the last few months. Over 9,000 natural gas wells are controlled by Atlas Energy which is an energy development business. Fuel, additives, oils and other products come from Chevron which goes via Texaco and CalTex brands to. Chevron announced today that they have reached an agreement to pay about $43 a share to acquire Atlas Energy.
Atlas Energy sells producing investigation
Due to the truth that Atlas Energy and Chevron are both publicly kept businesses, they’re held to certain standards in acquisition agreements. Two major law firms that investigate shareholder buyout agreements have launched inquiries into the Chevron / Atlas Energy offer. These companies claim that Atlas Energy did not “properly shop around” to get the “true value” of Atlas Energy for its shareholders. Atlas Energy should have gone for anything between $47 and $65 a share. This is what analysts have said.  Chevron shares went down 88 cents since the buyout offer when Atlas Energy shares went up over $43 a share.
A merging value to determine
Trying to determine what the value of a buyout and merger is can be hard. It’s often difficult to accurately decide. In publicly held businesses, stockholders are the ultimate owners of a business. Some Atlas Energy stockholders believe that although the business has been trading at around $30 per share, their company will probably be worth more. Many factors play into the "true" value of a company which is why it’s hard to determine. If it’s found that Atlas Energy has accepted an offer too low, their shareholders could force Chevron to pay more than their initial $4.3 million offer.
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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