((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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Decision on right of pre-emption comes later than Hess expected
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Hess shareholder expects deal to be approved unless higher offer
(Added Hess shareholder comment on implied value reporting 79% probability of transaction success in paragraphs 6 and 7)
Exxon Mobil Hess shareholders have no comment on the transaction.
Exxon and CNOOC Ltd approached the International Chamber of Commerce in March seeking a right of first refusal on any sale of Hess’ 30% stake in the Stabroek offshore oil block in Guyana, where the three companies control the largest oil discovery in almost a decade.
Hess set May 28 as the date for shareholder votes on the $53 billion all-stock deal, which would give Chevron a major stake in Guyana’s lucrative offshore oil fields, which have been shown to that they contain more than 11 billion barrels of oil and gas.
Roy Behren, co-chairman of New York investment firm Westchester Capital Management and a major Hess shareholder, said in an interview that Exxon would prefer to slow down the completion of the deal to have time to think about what happens next. events.
Westchester Capital plans to vote its 2 million Hess shares in favor of the Chevron deal unless a higher offer materializes, Mr. Behren said.
At Monday’s closing price for Hess and Chevron shares, Hess was trading at a $6.97 markup from the current deal value. Chevron closed at $162.30 and Hess at $159.40 at 4 p.m. on the New York Stock Exchange.
“The discrepancy suggests that there is about a 79% chance that the operation will be successful,” Mr. Behren said. “This figure is lower than the implied probability of a high quality trade
Exxon said it did not intend to make an offer for Hess, but could consider a larger stake in the Guyana joint venture.
“Exxon would probably like the shareholder vote not to take place, because it’s one more domino that has to fall for the transaction to go through,” Mr. Behren said Monday. “They want shareholders to not feel comfortable with the assumption that this is a walk in the park for Chevron
Mr. Woods’ comments point to a later decision on his claims and when the deal with Chevron could be reached. Previously, Hess said she wanted the case to be heard by the third quarter and concluded by the end of the year.
Chevron Chief Executive Michael Wirth separately told CNBC that the company was working to obtain approval from the U.S. Federal Trade Commission and a vote by Hess shareholders.
Hess did not respond to requests for comment.
An Exxon spokesperson said the 2025 arbitration deadline was not new and did not comment on shareholder remarks about a possible impact on Hess shareholder voting.
American competition authorities have not yet approved the Chevron-Hess agreement. Last week, the FTC approved Exxon’s $60 billion purchase of all the shares of the main American shale oil producer, Pioneer Natural Resources.
Exxon claimed to have a right of first refusal on any change of control of the Hess properties in Guyana, under the Stabroek consortium operating agreement. Hess and Chevron said they believed that right did not apply to the sale of the entire company.
