What was the total purchase price or enterprise value

Assignment Help Finance Basics

Reference no: EM131972889

Question: Exxon Mobil Corp. announced Monday it struck a $41 billion, all-stock deal to buy Houston-based XTO Energy Inc., placing a big bet on the future of the domestic natural gas market.

The acquisition, Exxon Mobil's biggest in a decade, sparked widespread investor speculation that the energy sector could be poised for a new round of consolidation as its biggest players vie for independent producers pinched by low gas prices. Read commentary about Exxon Mobil pouncing on gas.

The transaction value includes $10 billion of existing XTO debt and is based on Friday's closing share prices of Exxon Mobil XOM, +0.83% and XTO XTO, +0.44%

Exxon Mobil has agreed to issue 0.7098 of a share of common stock for each common share of XTO. The deal represents a 25% premium to XTO stockholders.

Shares of Exxon Mobil, part of the Dow Jones Industrial Average, fell 4.3% to close at $69.69, while XTO Energy jumped 15% to $47.86.

What was the total purchase price or enterprise value of the XTO acquisition by Exxon?

Reference no: EM131972889

Questions Cloud

What is the beta of qualcomm business assets : What is Qualcomm's enterprise value? What is the beta of Qualcomm's business assets?

Test the hypothesis formulated exclusively for this study : Using SPSS test (pearson correlation) to test the hypothesis formulated exclusively for this study to test the relationship between these variables

Comparing a corporate bond to a comparable treasury : Explain why using OAS provides a better measure of the relative value offered by a corporate bond(the price) than the spread to YTM method when comparing.

What would be the compound annual return on investment be : Facebook Inc. went public on May 18, 2012. The initial public offering $38.00 share. If the stock traded at 118.82 on May 17, 2016, what would be the compound.

What was the total purchase price or enterprise value : Exxon Mobil Corp. announced Monday it struck a $41 billion, all-stock deal to buy Houston-based XTO Energy Inc., placing a big bet on the future of the domestic

How expensive generally speaking expenditures be : An extensive body of literature has shown that higher quality leads to lower costs. Our lesson gave several examples specific to healthcare of ways.

Compute the additional investment in accounts receivable : Compute the additional investment in Accounts Receivable. Compute the incremental Return on New Investment.

Explain the three inventory control models : Explain the three inventory control models and the driving factor in each model. Provide examples for each one using current companies.

How do you determine ethical standards in various countries : How do you determine the ethical standards in various countries?

User Account

All Pages