XOM - Is Chevron's $53B Acquisition of Hess in Jeopardy? | Benzinga
Chevron's (NYSE: CVX) proposed $53 billion buyout of Hess Corporation (NYSE: HES) has encountered significant turbulence stemming from legal disputes and shareholder advisory disagreements. The acquisition, which would grant Chevron a substantial stake in the lucrative Stabroek Block offshore Guyana, is mired in uncertainty due to ExxonMobil's (NYSE: XOM) claims and mixed advisory opinions.
Let's delve into the complexities surrounding the deal and assess its prospects.
Conflicting Stance by Investor Advisories
Institutional Shareholder Services (‘ISS') has recommended that Hess shareholders abstain from voting, citing the unresolved arbitration initiated by ExxonMobil over its right of first refusal ("ROFR") on Hess' Guyanese assets. ISS argues that shareholders cannot make an informed decision without knowing the arbitration outcome, which could be dragged till 2025.
Notably, HBK Capital Management, a major Hess shareholder, is also looking to refrain from voting, aligning with ISS' recommendation. HBK argues ...