I am not dismissive of this news, because big oil likes to buy quality distressed assets when oil is cheap. They’ll let the offal flush down the toilet; then buy their assets in liquidation. But companies like Apache have staying power, despite the fact they’ve been shedding billions in losses over the past year.
The Houston-based company rejected the initial offer and is working with financial adviser Goldman Sachs Group Inc. on defense, said the people, who asked not to be identified because deliberations are private. The potential buyer, who couldn’t immediately be identified, sent a letter to Apache in the past few weeks and it’s unclear whether talks will resume, one of the people said.
APA’s market cap is $18 billion, whose shares have fallen over 35% over the past year. Other stocks that might move in sympathy, if at all, include DVN and PXD.
APA is up 12% in pre-market trade.
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oil stocks have killed my port this year.