Hess (HES) Chief Executive John Hess has until Tuesday to resolve some shareholders' concerns over the proposed $53 billion merger with Chevron (CVX), Reuters reported Friday.
The deal has seen a decline in support due to regulatory delays and a legal challenge from Exxon Mobil (XOM) that have put about 40% of shares outstanding on the fence, according to the report.
Shareholders HBK Capital Management, D.E. Shaw & Co. and Pentwater Capital Management have expressed reservations, while three other shareholders filed lawsuits to delay or block the vote, Reuters said. Six large investors holding about 40% of the company's stock told Reuters that they have decided or are strongly considering abstaining, which is essentially a no vote.
The report added that the votes of Vanguard Group, which holds 10% of Hess shares, could swing the outcome.
Chevron "looks forward to Hess obtaining a successful shareholder vote and completing the transaction on the terms of our merger agreement," a company spokesperson told Reuters. Hess shareholders are scheduled to vote for the deal Tuesday.
Hess and Chevron did not immediately respond to MT Newswires' requests for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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