Nexen Gives Top Return on Bet Canada Clears Bid
Nexen Inc., the target of the largest overseas bid from a Chinese company, is offering traders the chance to make the most money on any North American deal by betting the $15.1 billion takeover will get Canadian approval.
Cnooc Ltd., China’s biggest offshore oil and gas explorer, agreed to pay $27.50 a share for Calgary-based Nexen in a deal that will need to withstand the government’s review under its foreign-takeover law. The 66 percent premium to its 20-day stock average is more than double the industry average, and less than a third of Nexen’s production comes from Canada, according to data compiled by Bloomberg. That signals Nexen won’t be the next Potash Corp. of Saskatchewan Inc., one of only two Canadian deals to be blocked in 27 years, said WallachBeth Capital LLC.