Hedge Funds Stake Billions on Hess Deal Sidestepping Exxon Claim
- Exxon claims right to buy Hess’s stake in Guyana oil project
- Firms that made big merger-arbitrage bets are staying course
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Hedge fund managers that wagered billions on Chevron Corp.’s October deal to buy Hess Corp. are sticking to their bets despite another roadblock that could potentially torpedo the acquisition.
Exxon Mobil Corp. said last week it has the first right to purchase Hess’s stake in a lucrative offshore oil development they jointly own off the coast of Guyana, the crown jewel of Chevron’s $53 billion acquisition. It follows escalating tensions between Guyana and neighbor Venezuela that have prompted some to reassess the likelihood of the takeover going through.