Hess-Chevron Merger Path Muddied as Traders Weigh Guyana Risk
- Spread surged above $12 this week, up from $3.50 last week
- $53 billion oil merger also under antitrust probe by FTC
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Traders are more jittery than ever about the outcome of the Chevron Corp.’s proposed $53-billion takeover of Hess Corp. as Venezuela threatens to seize mineral-rich regions in neighboring Guyana.
Hess shares fell roughly 5% this week as the conflict escalated, Chevron slid less than 1%. Stock in Hess — which generated nearly a quarter of its revenue from Guyana last year — traded nearly $14 below the value of the all-stock bid at from the oil giant on Thursday, the widest gap since the deal was announced. Hess shareholders will receive 1.025 shares of Chevron for each Hess share.