U.S. Stocks Struggle; Chevron Offers $3.2 Billion for Atlas Energy

Bikram Pandey
09 Nov, 2010
New York City

U.S. stocks traded mixed as the dollar declined and commodities prices gained. Chevron Corp agreed to acquire Pennsylvania based Atlas Energy Inc for $3.2 billion and assume $1.7 billion in long term debt. Priceline.com and McDermott International gained on better than expected earnings.

[R]10:50 AM New York – U.S. stocks traded mixed as the dollar declined and commodities prices gained. Chevron Corp agreed to acquire Pennsylvania based Atlas Energy Inc for $3.2 billion and assume $1.7 billion in long term debt. Priceline.com and McDermott International gained on better than expected earnings.[/R]

U.S. stocks traded mixed in the first hour of trading as the dollar declined and the gold and crude oil climbed.

The prospects of a resolution at the G20 summit this week that will determine the direction of currency and global financial imbalance appear dim. Emerging markets and Germany appear to be united against the U.S. Federal Reserve monetary stimulus.

The dollar resumed its slide and gold and silver traded at a record level. In New York trading, gold increased $16 to $1,419.20 and crude oil increased to $86.20 a barrel.

Chevron Corp agreed to acquire Pennsylvania based Atlas Energy Inc for $3.2 billion and assume $1.7 billion in long term debt.

The company controls natural gas rich Marcellus Shale formation in Pennsylvania and the natural fields in the region stretch as far as West Virginia to New York.

Chevron offered $38.25 a share in cash plus a stake in pipeline affiliate controlled by Atlas.

Atlas said in its press release said that third quarter daily production rose in the third quarter increased 18% from a year ago to 118.3 million cubic feet. Atlas Energy controls 6220,000 acres in Marcellus Shale with 1 trillion cubic feet of natural gas.

Vodafone Group Plc reported fiscal first half sales increased 3.9% to £22.6 billion and operating earnings declined 1.2% to £7.36 billion.

Vodafone also agreed to sell its stake in Vodafone Japan to Softbank for a total price of 3.1 billion. The first tranche sale in December 2010 will raise £1.6 billion and the second tranche sale in April 2012 will raise £1.5 billion.

The Warsaw Stock Exchange on the first day of trading surged as much as 23% after Poland sold 64% stake in the country’s sole exchange. The public offering raised 1.2 billion zloty or $420 million that valued each share at 44 zloty. The stock traded as high as 52.89 zloty.

Barclays increased less than 3% to 293.10 pence after it reported quarter net plunged 76%. The UK based lender said its Core Tier 1 ratio was unchanged at 10%.

Stock Movers

Atlas Energy Inc soared 35% after the company agreed to be acquired by Chevron Corp for $3.2 billion. Chevron also agreed to assume $1.7 billion.

Priceline.com Inc increased 8% after the online travel agency reported better than expected fourth quarter earnings.

Yahoo! Inc gained more than 5% on media speculation that private equity firm KKR & Co may look to take company to take private. Alibaba.com, Hong Kong based ecommerce platform operator said that it may buy back Yahoo stake in the company that may cost as much as $5 billion.