The Rumor: Chevron (NYSE: CVX) to acquire Cheniere Energy (NYSE: LNG) for $19.50 per share, according to sources. A rumor involving the same two companies was reported on January 12, with a $16 purchase price.
A spokesperson for Cheniere Energy would not comment on the rumor. Chevron did not respond to a request by Benzinga for comments.
Cheniere Energy closed at $12.68 Tuesday, a loss of 3.5% for the day on 1.25 times the average volume.
Given that banks have lots of cash to lend and that they have commitment for most of their capacity, it would be difficult to see why institutions would not want to finance this project...would they want to underwrite new housing development or a business with future 20 years of revenue guaranteed. ..banks and investors will be lining up for this one. What's a few billion dollars??
Your numbers are backward looking and we are looking to the future...they will have no problem with financing as a lot of capacity already sold...demand for NG only going to increase from here and EU not producing much of their own...Russia is unreliable and France has banned fracking and other likely to follow.
They do have other things that could earn them more on their investment today but very few opportunities to fast track the export of NG other than by buying a company that has already done the permitting...they can and will afford to buy time...also EPA/FERC likely to limit number of export terminals as want to appease the green folks and don't want too much of the stuff leaving...this is a sure thing...like having a time machine...though I think it is more likely to be COP or XOM or KMI that buys them out.