QEP Resources Receives $2B Takeover Bid
Activist investor Elliott Management Corp. has made an all-cash offer of $2.07 billion to acquire QEP Resources in a letter dated Jan. 7.
In the letter, Elliott offers to pay $8.75 per share in cash for QEP Resources, which it refers to as “deeply undervalued” in today’s market. The offer represents a premium of 44 percent over QEP’s closing stock price of Jan. 4.
QEP Resources has recently tried to develop itself into a pure-play Permian company by divesting its assets in the Williston and the Haynesville. Both deals are currently still pending closure.
The offer for takeover is conditional, dependent upon the closure of the Haynesville asset sale, but not the Williston deal, Elliott said.
“We have conducted an extensive amount of public diligence on [QEP Resources] and have had ongoing dialogue with the sell-side analyst community. We believe shareholders are frustrated and that a sale of the company would be the best approach to deliver maximum value to shareholders,” Elliott’s letter states.
In a Jan. 7 note to investors, financial firm Stifel said Elliott’s proposed transaction price implies an approximate value of $21,000 per acre, but Stifel estimated the fair market value for QEP’s Permian assets to be between $30,000 and $40,000 per acre. Therefore, Stifel does not anticipate Elliott’s offer to be accepted.
QEP Resources’ stock closed at 6.08 Jan. 6 and surged on Monday, up about 40 percent at 2:45 p.m. EST.
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