38._Mergers_TDL - http:/news.bbc.co.uk/2/hi/business/8356...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
http://news.bbc.co.uk/2/hi/business/8356 332.stm 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2
Background image of page 2
3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 From “What is it like being an Oil Trader?
Background image of page 4
5 The Emergence of Surplus
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Factors contributing to mergers Low price expectations Competition Excess supply Rise of State Owned Oil Companies Different objectives Rates of reinvestment are lower Profits are siphoned to pay for social programs
Background image of page 6
1981, Hudson’s Bay Oil and Gas Dome Petroleum bought 52.05 % in 1981 Seagrams bought 32.2% of Conoco in 1981 DuPont was brought in as White Knight and won out Over Seagrams and Mobil (secure petroleum feedstock) Seagrams (Bronfmans) then 24.3% owner of DuPont and largest single shareholder 1997 Conoco and DuPont parted ways 7
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
T Boone Pickens- Mesa Petroleum Fascinated by the gap between the stock value and the value of the underlying oil and gas assets Shareholders value – “value gap” Veteran of futures trading – cattle trading First takeover in 1969 Next target was Cities Service in 1982 – stock selling or one third of appraised value of its oil and gas reserves. Oxy won out but Mesa made $30 million 8
Background image of page 8
1983 T. Boone Pickens need $300 million to support Gulf of Mexico drilling program Closed in on Gulf Oil – the most vulnerable Started to buy Gulf stock - wanted one half of US oil and gas reserves transferred into reserves trust for direct ownership of stockholders, giving them the cash flow and cutting out double taxation on dividends The fight was on and Chevron won – and Pickens got his $300 million 9
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Mukluk well drilled by BP (Sohio) and Diamond Shamrock 1983 $2 billion well – great optimism Only Dr. Drill knows for sure Dry hole Turning point for exploration in USA Shift from exploration to buying reserves 10
Background image of page 10
11 Atlantic Richfield Company (ARCO)
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/19/2011 for the course EGEE 120 taught by Professor Considine,timothy during the Spring '07 term at Pennsylvania State University, University Park.

Page1 / 30

38._Mergers_TDL - http:/news.bbc.co.uk/2/hi/business/8356...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online