Energy, Energy Service, Natural Gas & Oil Sectors: Re: More US-Canada Energy Deals?

» JenL_2 - Re: More US-Canada Energy Deals?

In response to message posted by lcha:

Yeah the byees - MXN & AXN sure have spiked on anticipation of the buy-outs, and the buyer - DVN seems to follow the S&P500 on down (of course the chart doesn't show dividends). Wonder if investors think DVN paid too high premiums for these companies? Maybe investors aren't seeing the long-term value-added benefits of these mergers, and are just looking at the short-term uncertainties created by consolidation and integration of companies.

But that's usually the case - the buyee spikes on the news and the buyer gets whacked, at least temporarily. It seems a lot of folks take the opportunity to sell or take profits when their stock gets bought-out. But there are exceptions to the rule. In the paper sector the current WY hostile takeover bid for WLL has caused WLL to spike, but WY has gone up also. And yesterday's HWP-CPQ buyout news sent both stocks down.....Jen

-- posted by JenL_2