Investing.com
Published Jun 14, 2022 07:09AM ET
Updated Jun 14, 2022 11:12AM ET
Continental Resources (CLR) Gains on Hamm Takeover Bid, Which Is Seen as Too Low
By Sam Boughedda
Continental Resources' (NYSE:CLR) stock rallied Tuesday after it was revealed the oil and natural gas producer has received a $70 per share “take private” bid from Chairman Harold Hamm, the company's founder and his family.
The businessman and his family already own approximately 83% of the company's outstanding stock. The $70 per share offer represents around a 9% premium over Continental's closing price on June 13.
Following the news, RBC Capital analyst Scott Hanold said, "they think it will take a higher price for existing shareholders, especially in the current elevated commodity price environment."
"The average consensus price target is $78-79/share. We forecast CLR's FCF generation at $6.5 billion over the next 18 months, which is above the $4.3 billion needed to fund at the offer price," the analyst wrote.
Meanwhile, Smead Capital, the largest Continental Resources shareholder after the Hamm Family, reacted to the news, stating they believe the offer "undervalues" the shale producer.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.