COP - Why Marathon Oil Jumped Over 10% This Week
2024-05-31 09:07:00 ET
Shares of Marathon Oil (NYSE: MRO) rallied 10.4% through Thursday trading, according to data from S&P Global Market Intelligence .
The rally was due to the merger agreement that was struck on Wednesday with oil and gas giant ConocoPhillips (NYSE: COP) , which agreed to acquire Marathon for an enterprise value of $22.5 billion.
Marathon shareholders will receive 0.255 shares of ConocoPhillips per Marathon share, amounting to a 16% premium, given the two companies' share prices before the announcement. But as ConocoPhillips' stock fell a bit in the aftermath of the news, Marathon ended the week slightly lower than the premium as it will soon be combined with Conoco.
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Why Marathon Oil Jumped Over 10% This Week