OKE - Magellan Releases New Details on Deal With Oneok; Here's 1 Red Flag Investors Should Watch
2023-09-06 08:34:53 ET
Normally, acquisitions go fairly smoothly. Sometimes things get complicated.
ONEOK 's (NYSE: OKE) proposed acquisition of Magellan Midstream Partners (NYSE: MMP) is increasingly uncertain. Here's what investors need to understand, with Magellan's management team providing very clear examples of how bad it could get if the deal falls through.
When a company offers to buy another company, it generally provides a premium to the current market price. That's intended to entice the shareholders of the target to agree to the deal. Wall Street reacts to this development as you would expect, bidding up the price of the target toward the offer price.
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Magellan Releases New Details on Deal With Oneok; Here's 1 Red Flag Investors Should Watch