Concho, Three Rivers in $1 B Deal; Global Markets Sharply Down

Arthi Gupta
14 May, 2012
New York City

U.S. indexes edged lower on the ongoing political worries in Europe as the euro zone finance ministers discuss the Greek fallout and Greece heads for another election as early as June 17th. Concho Resources agreed to acquire oil and natural gas assets of Three Rivers for $1 billion.

[R]9:35 AM New York – U.S. indexes edged lower on the ongoing political worries in Europe as the euro zone finance ministers discuss the Greek fallout and Greece heads for another election as early as June 17th. Concho Resources agreed to acquire oil and natural gas assets of Three Rivers for $1 billion.[/R]

U.S. indexes edged lower on the ongoing political worries in Europe.

Traders are awaiting the manufacturing and retail sales reports to be released in the week and hoping that the recent economic strengths are likely to be confirmed.

The European indexes slumped more than 2% after political parties in Greece failed in their latest efforts to form a coalition government and the party demanding the rejection of bailout terms is likely to increase its representation in the next election.

Greek President Karolos Papoulias is expected to make one last attempt tomorrow to convince minority parties to form a unity government.

Finance ministers of the euro area are set to meet later today to discuss the bailout package for Greece and the current developments in Spain and the leaders are openly discussing the implications of the possible fallout from the Greece’s departure from the euro zone.

Asian markets traded mixed after the People''s Bank of China slashed the reserve requirement ratio by 50 basis points to 20% for large commercial banks, the third decrease in six months. The new rate will be effective from May 18.

Concho Resources to Acquire Oil and Natural Gas Assets

Concho Resources Inc., the independent oil and natural gas company agreed to acquire all the oil and natural gas assets of Three Rivers Operating Co. LLC for $1 billion in cash.

Chevron Inks Deal with Tohuku Electric

Chevron Corp., the integrated energy company reportedly signed an agreement to sell more liquefied natural gas to Tohuku Electric Power Co, the Japanese electricity supplier from its $29 billion Wheatstone project in Western Australia.

Tohuku will buy 1 million tons of LNG a year from Wheatstone for 20 years. The first gas shipment from the Wheatstone project is expected in 2016.

Yahoo! CEO Resigns

Yahoo! Inc. said that Chief Executive Officer Scott Thompson resigned from the position and as a director of the company. The company named Ross Levinsohn as interim Chief Executive Officer and Fred Amoroso as Chairman of the Board of Directors, effective immediately.

Avon to Consider Revised Coty Bid

Avon Products, Inc.’s board said it would consider Coty''s revised offer communicated through the letter dated May 9 and respond within a week.