Atlas Energy Chevron buyout under multiple investigations

Natural Gas

With the purchase of Atlas Energy, Chevron would gain 9,000 natural gas wells. Image: Wikimedia Commons

Atlas Energy is a natural gas producer and developer in middle America and the Appalachian region. A publicly-held company, Atlas Energy has received a buyout offer from Chevron valued at $4.3 billion. Two shareholder-representative companies have launched investigations into the offer, however.

Chevron’s offer for Atlas Energy

Atlas Energy has been trading at around $30 to $35 a share for the last few months. An energy development company, Atlas Energy controls over 9,000 natural gas wells. Chevron is a multinational corporation that provides fuel, additives, oils and other products through Chevron, Texaco and CalTex brands. Chevron announced today that they have reached an agreement to pay about $43 a share to acquire Atlas Energy.

Atlas Energy acquisition under investigation

Due to the fact that Atlas Energy and Chevron are both publicly held companies, they are held to certain standards in acquisition agreements. Two major law firms that investigate shareholder buyout agreements have launched inquiries into the Chevron / Atlas Energy deal. These companies claim that Atlas Energy did not “properly shop around” to get the “true value” of Atlas Energy for its shareholders. Some analysts claim that a fair price for Atlas Energy would have been between $47 and $65 per share. That difference is a lot bigger than a simple no fax payday loan.  Since the buyout offer, Chevron shares have fallen by about 88 cents, and Atlas Energy shares have risen to slightly over $43.

Determining the value of mergers

The value of buyouts and mergers can often be difficult to accurately determine. In publicly held companies, stockholders are the ultimate owners of a company. Some Atlas Energy stockholders believe that even though the company has been trading at around $30 per share, their company is worth more. Determining the “true” value of a company can often be difficult, since it is based on a wide variety of factors. If it is 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.



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