Possible Chevron buyout of Atlas Energy raising inquiries

Atlas Energy develops natural gas in the United States. Chevron offered Atlas Energy $ 4.3 billion for their business. The Board of Directors at Atlas Energy accepted the offer. Two firms are investigating the Chevron-Atlas deal. These firms are investigating if Atlas offered a deal that undervalues the stock. Source for this article – Atlas Energy Chevron buyout under several inspections by Personal Money Store.

What the deal is from Chevron to Atlas Energy

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. 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 could be paid for Atlas Energy by chevron which had been announced.

Examination on Atlas Energy being sold

Due to the belief that Atlas Energy and Chevron are both publicly held businesses, they are held to certain standards in purchase agreements. Two major law firms that investigate shareholder buyout agreements have launched inquiries into the Chevron / Atlas Energy deal. The businesses say that the "true value" of Atlas Energy isn't being given to shareholder. They say Atlas Energy didn't "properly shop around" for it. Some analysts claim that a fair price for Atlas Energy would are between $47 and $65 per share. A faxless payday loans does not even compare to that difference. Since the buyout offer, Chevron shares have fallen by about 88 cents, and Atlas Energy shares have risen to slightly over $43.

A merging value to determine

The value of buyouts and mergers can often be difficult to accurately determine. Publicly held businesses have a special owner. Stockholders each own a piece of ownership. Atlas Energy has been trading for $30 a share. It’s worth more than that to numerous different stockholders though. It is hard to determine what the "true" worth of a company is. So many factors play into this number. The offer Atlas Energy accepted might be found to be too low. In that case, more than the $4.3 million Chevron agreed to pay may be demanded by the shareholders.

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/