XEC - Cimarex had talks with five other firms before Cabot deal

Cimarex Energy ([[XEC]] +1.9%) says it engaged in merger talks with five other companies before it agreed to be bought by Cabot Oil & Gas for $6.7B, a disclosure that will re-energize criticism of the deal's strategic rationale.Cimarex signed non-disclosure agreements and exchanged private information with Cabot ([[COG]] +5.5%) and another firm, according to an investor presentation, after talks had started in mid-2020 with various potential deal partners.Cimarex shares sank 7% on the day of the merger announcement, disappointing investors by choosing to seek geographic and commodity diversity rather than combine with another oil producer in the Permian Basin.But Cimarex now trades at a premium when compared with the exchange rate in the Cabot offer, so the market may be expecting a better offer, KeyBanc's Leo Mariani says.Cabot and Cimarex "have no acreage overlap, which results in no clear strategic benefit to XEC shareholders and precludes the two companies from

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Cimarex had talks with five other firms before Cabot deal