Way off topic: This is very good for my steady eddie XON
(COMTEX) B: Exxon and Mobil confirm merger talks
B: Exxon and Mobil confirm merger talks
NEW YORK, Nov 27 (AFP) - US oil companies Exxon and Mobil confirmed
Friday they were negotiating a merger.
In a joint statement the oil giants said discussions were under way,
leading to "a possible combination transaction."
"No definitive agreement has been reached. We cannot give any assurance
that an agreement will be reached. Beyond this statement, we have no
further comment," the statement said.
A New York broker said there were several types of combination
possible, but cited market speculation that the most likely scenario is
a takeover of Mobil by Exxon.
Exxon is the world's biggest energy group and a takeover of Mobil, the
second largest US oil group, would be the largest industrial merger to
date.
It would also create the biggest oil company in the world -- ahead of
anglo-Dutch group Royal Dutch Shell -- with a market capitalisation of
238 billion dollars.
Exxon, based in Irving, Texas, had a turnover of 137 billion dollars in
1997, while Mobil, which has its headquarters in Fairfax, Virginia,
posted a turnover of 66 billion dollars in the same year.
The shares of both companies soared on the New York stock exchange, on
the back of the news.
Exxon rose 3-3/8 to 76 dollars a share and Mobil was up 7-3/8 to 85-3/4
shortly after the opening of the session of the New York Stock
Exchange.
The projected merger comes just months after British Petroleum joined
forces with the American company Amoco this summer.
jld/cw/ld
*** end of story *** |
