Possible Chevron acquisition of Atlas Energy raising queries

Atlas Energy is a natural gas producer and developer in middle The United States and also the Appalatian region. A publicly-held business, Atlas Energy has received a buyout deal from Chevron valued at $ 4.3 billion. Two firms are investigating the Chevron-Atlas deal. These firms are investigating if Atlas offered a deal that undervalues the stock. Article resource – Atlas Energy Chevron acquisition under multiple inspections by Personal Money Store.

What the deal is from Chevron to Atlas Energy

Atlas energy has been traded within the last few months. It had been $30 to $35 for a share. Atlas Energy is an energy development company. Over 9,000 natural gas wells are controlled by it. Chevron, Texaco and CalTex are all used to disperse Chevron product. Fuel, additives, oils and other goods are all a part of these products. $43 a share will be paid for Atlas Energy by chevron which was announced.

Atlas Energy purchase under examination

Chevron and Atlas Energy are both public corporations. This means that standards in purchase 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. Atlas Energy did not "properly shop around" in order to get the "true value" for its shareholders of Atlas Energy according to the businesses. Some analysts claim that a fair price for Atlas Energy would are between $47 and $65 per share. That's a huge difference. A no fax paydayloan can't even compare. Atlas Energy shares went up over $43 since the buyout offer. Chevron shares have gone down 88 cents though.

Figuring out what a merger worth is

Trying to determine what the worth of an acquisition and merger is can be hard. It is often difficult to accurately decide. The owners of a business are stockholders in publicly held corporations. Some Atlas Energy stockholders believe that even though the business has been trading at around $30 per share, their business will probably be worth more. It is hard to determine what the "true" value of a business is. So numerous factors play into this number. Shareholders might require more than the $4.3 million that Chevron offered to be paid if it appears Atlas Energy accepted an offer too low.

Articles cited

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/