The Exxon-Mobil Merger Application of comparable transactions analysis Please conduct the comparable transactions analysis for the Exxon-Mobil merger. 1. Please use three major oil mergers in the late 1990s as comparable transactions. Data provided in the tables below. 2. Use the transaction multiples in the BP-Amoco transaction only.< 3. Explain why your results might differ substantially from the $74.2 billion paid by Exxon.< (billion dollars) Total paid Market value target Market value combined Book value target LTM net income target LTM sales target Premium paid, % target Premium paid, % combined LTM sales Book value LTM net income Market value target Market value combined BP-Amoco 47.1 39.1 113.3 15.74 2.1 34.2 22.3% 7.7% Mobil $63.0 19.04 2.94 58.7 233.74 Chevron Texaco Philips Conoco 15.24 15.24 34.9 6.6 2.0 35.8 30.4 85.4 12.8 2.3 ( 46.4 17.7% 6.3% 40.6 0% 0%
The Exxon-Mobil Merger Application of comparable transactions analysis Please conduct the comparable transactions analysis for the Exxon-Mobil merger. 1. Please use three major oil mergers in the late 1990s as comparable transactions. Data provided in the tables below. 2. Use the transaction multiples in the BP-Amoco transaction only.< 3. Explain why your results might differ substantially from the $74.2 billion paid by Exxon.< (billion dollars) Total paid Market value target Market value combined Book value target LTM net income target LTM sales target Premium paid, % target Premium paid, % combined LTM sales Book value LTM net income Market value target Market value combined BP-Amoco 47.1 39.1 113.3 15.74 2.1 34.2 22.3% 7.7% Mobil $63.0 19.04 2.94 58.7 233.74 Chevron Texaco Philips Conoco 15.24 15.24 34.9 6.6 2.0 35.8 30.4 85.4 12.8 2.3 ( 46.4 17.7% 6.3% 40.6 0% 0%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:The Exxon-Mobil Merger
Application of comparable transactions analysis
Please conduct the comparable transactions analysis for the Exxon-Mobil merger.
1. Please use three major oil mergers in the late 1990s as comparable transactions. Data
provided in the tables below.
2.
Use the transaction multiples in the BP-Amoco transaction only.<
3. Explain why your results might differ substantially from the $74.2 billion paid by Exxon.<
(billion dollars)
Total paid
Market value target
Market value combined
Book value target
LTM net income target
LTM sales target
Premium paid, % target
Premium paid, % combined
LTM sales
Book value
LTM net income
Market value target
Market value combined
BP-Amoco
47.1
39.1
113.3
15.74
2.1
34.2
22.3%
7.7%
Mobil
$63.0
19.04
2.94
58.7
233.74
Chevron Texaco Philips Conoco
15.24
15.24
34.9
6.6
2.0
35.8
30.4
85.4
12.8
2.3
(
46.4
17.7%
6.3%
40.6
0%
0%
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