Monday, December 14, 2009

Blue Horseshoe Loved XTO Energy (XTO, XOM)

Exxon Mobil Corporation (NYSE: XOM) and XTO Energy Inc. (NYSE: XTO) announced an all-stock merger transaction valued at $41 billion.  ExxonMobil has agreed to issue 0.7098 common shares for each common share of XTO.  The deal has already been approved by the boards of directors of both companies. The agreement is subject to XTO stockholder approval and is also subject to regulatory approval.  XTO shares are up 19% at $49.15 on 1.7 million shares as of 7:52 AM EST.  We’d watch spreads contract and tighten on this one over the days and weeks ahead, because it is not known how the current administration will treat a domestic merger of this sort.


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