We’ve read the preferential right to purchase provision at issue in the Chevron-Hess merger. We don’t stand a chance because the typical “change of control” exception applies.
DW is pursuing this for no reason other than to pump our stock for his own performance compensation package. We get it.
Maybe we thought the Paris arbitration would coincide with the Olympics and in the evenings we could have watched Simon Biles dunk on the world.
XOM would be foolish to not enforce the terms of its JOA. It invites other companies to violate contracts. Since I started with the company "rule of law" and "sanctity of contracts" were key watch words. Allowing a party to ignore contract terms diminishes the value of your contract. Similarly, if there is a true dispute on these contract terms, then it should go to arbitration...These are standard industry terms in the JOA. What the clauses mean needs to be determined...so that better terms can be drafted. The industry is watching because these terms are in many international contracts, with dozens of international deals and blocks and companies involved.
DW isn't a patch on Socks. He's world class Exxon, creme de la creme.
We want to delay the arbitration and kick the can down the road. The longer this teases, the more value XOM get. I just cannot wait for XOM to lose though, DWW will compete and lose. Alas, we will sell it as a win even when we lose as DWW doesn’t lose. Even with the Engine1, he didn’t admit losing.
The only tussle with Chevron is all the current and former Exxon employees who keep applying for jobs there.
@ 1ydy
I agree. Even if it fails...it's worth Billions in the delay alone.
No such thing as "a typical Change in control" exception...Read the JOA, there is a definition of CIC and there is a procedure to follow if there is a CIC. My bet is 50% chance merger fails and Hess stays independent
But it's mean
It will eventually go through, but I also agree with the strategy of making Chevron work for it a bit, rather than buying themselves in as a bunch of ‘Johnny come latelies’ to the party. It’s business, it’s competitive, we owe Chevron nothing
Yes, but the payoff relative to our legal bills is enormous so it’s worth pursuing from an expected utility value standpoint.