Yes, but why would XOM want BP. The outstanding liabilities associated with the Gulf incident could cancel out any synergies XOM might derive from an acquisition. Don't forget how long the 1989 Valdez accident has been in the public conscience and no one was killed in that incident. The politicians would have a field day if another accident occurred after a BP acquisition. Too risky in my view.
You have made other predictions for price movement and price levels for a given day and you haven't been right yet. Why do you think this time will be any different?
No, I'm saying they borrowed money because it was prudent to do so in this low interest rate environment. With their AAA rating they are able to get the lowest rates available. They stated at the time that this money would supplement their cash flow from operations and will be used as they see fit. This $8 billion affords them the luxury of increasing the dividend AND using it for operations. Exxon has the strongest balance sheet in the industry.
Exxon just received $8 billion from a debt offering. They have plenty of cash. There is no way they will not increase their dividend and stop their multiple years of dividend increases. Get your facts straight.
XOM will increase their dividend. They have been doing this for years and will continue. The 8 billion dollars they borrowed recently will easily pay for any dividend increase. Since they have been buying copious numbers of shares of their own stock for years they have over 2 billion shares in their treasury account to use in the event they wish to buy other companies. They won't overpay this time, as they did when they acquired XTO a few years ago. They can afford to be patient.
Remember the $8.2 million share offering with warrants that closed on 2/18/2015? The stock was priced at $3.62 per share. Quite possibly those that were fortunate enough to get an allocation at this price saw the opportunity to sell before the presentation on Monday and make a quick 75 cents on each of their shares..
Why would you do this? What if they come out with positive news at the conference. The stock price could move up and leave you chasing it at a higher price.
I wonder if they have divested the fuel they use to heat their campus buildings. Are they willing to mandate that students live in unheated dorms and attend unheated classes. Don't forget the air conditioning in the summer.
Are the administration officials willing to put their money where their mouths are?
I think they know more about the results of the Phase III trials than they are letting on and this is why the warrant price is set so high. The results must be very good to this point in time and they are simply providing a mechanism for the warrant buyers (presumably large institutions and , of course, management awards) to profit ahead of the crowd. I see this as encouraging for the chances of FDA approval.