Nexen ENTERS Into Agreement With CNOOC and 4 Hot Stocks On the Move
Nexen Inc. (NYSE:NXY): CNOOC Ltd (NYSE:CEO) and Nexen (NYSE:NXY) have made an agreement in which CNOOC Ltd will acquire all of the outstanding common shares of Nexen for $27.50 per share. The purchase price represents a premium of 61% for the closing price of Nexen’s common shares on the New York Stock Exchange, with a premium of 66% to Nexen’s 20 trading-day volume-weighted average share price. Total cash consideration of approximately $15.1B will be paid for Nexen’s common and preferred shares, and their current debt of approximately $4.3B will remain outstanding. The transaction will be funded by CNOOC Limited’s existing cash resources and external financing and will be completed as a plan of arrangement, which will close in the fourth quarter of 2012. The acquisition of Nexen will help to expand CNOOC Limited’s overseas businesses and resource base so that they will be able to deliver long-term, sustainable growth. After royalties in the second quarter of 2012, Nexen had an average production of 207 mboe/d. Shares of Nexen Inc. are trading at 52.58% higher today.
NRG Energy Inc (NYSE:NRG): NRG Energy Inc. anticipates that they will achieve the merger with GenOn, for a one-time cost of $155M, in the first quarter of 2013. Fortunately, they do not see any regulatory obstacles hindering the process. GenOn views their adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, for the fiscal year 2012, at $476M, for the fiscal year 2013 the adjusted EBITDA will be $687M, and for fiscal year 2014, the adjusted EBITDA will be $730M. NRG believes that they will be able to reduce the debt, of the combined businesses, by $1B. Shares of NRG Energy Inc. are trading at 7.48% higher today.
CME Group Inc (NASDAQ:CME): The industry debate over a better way to protect customer’s money has intensified. The CME Group, last week, openly questioned whether brokers should be allowed to continue being allowed to hold client collateral; some have suggested that the implementation of a third-party depository could work. Even if a system is established to allow interest income to flow back to the brokers, it will cost money. Shares of CME Group Inc are trading at 0.60% lower today.
Chipotle Mexican Grill, Inc. (NYSE:CMG): Chipotle Mexican Grill Inc. (NYSE:CMG) reported second-quarter 2012 earnings of $2.56 per share, and investors are still upset. Their shares are trading at 3.02% lower today.
StemCells, Inc. (NASDAQ:STEM): Shares of StemCells Inc. (NASDAQ: STEM), a biotechnology company engaged in research, development and commercialization of stem cell therapeutics, as well related technologies for academia and industry, are active in pre-market trading today. Shares of StemCells, Inc. are trading at 1.45% lower today.
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