Friday, November 12, 2010

Atlas Energy Chevron buyout under multiple investigations

Atlas Energy is a natural gas producer and developer in middle The United States and the Appalatian region. Chevron offered Atlas Energy $ 4.3 billion for their business. The Board of Directors at Atlas Energy accepted the offer. 2 law firms have launched inspections to the deal. Both of these firms are shareholder-representative firms.

Atlas Energy getting Chevron offer

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 company. Fuel, additives, oils and other products come from Chevron which goes through Texaco and CalTex brands to. An agreement on what chevron could be paying for Atlas Energy was made today. $43 a share was the price decided on.

Atlas Energy acquisition under investigation

Chevron and Atlas Energy are both public corporations. This means that standards in purchase agreements are expected to be kept up. Shareholder buyout agreements are investigated by two major law firms. Both have decided the Chevron/Atlas Energy offer needs to be investigated. These companies claim that Atlas Energy didn’t “properly shop around” to get the “true value” of Atlas Energy for its shareholders. Atlas Energy ought to have gone for anything between $47 and $65 a share. This is what analysts have said. That difference is a lot bigger than a simple no fax payday loan. Chevron shares went down 88 cents since the buyout offer when Atlas Energy shares went up over $43 a share.

Deciding the worth of mergers

Trying to determine what the value of a buyout and merging is can be hard. It’s often difficult to accurately decide. In publicly held businesses, stockholders are the ultimate owners of a company. Atlas Energy has been trading for $30 a share. It’s worth more than that to many different stockholders though. Numerous factors play to the "true" value of a business which is why it is hard to determine. Shareholders might require more than the $4.3 million that Chevron offered to be paid if it seems Atlas Energy accepted a deal too low.

Data from

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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