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Net Asset Valuation Of Whiting Petroleum’S Acquisition Of Kodiak Oil And Gas, Alexander M. Beeker
Net Asset Valuation Of Whiting Petroleum’S Acquisition Of Kodiak Oil And Gas, Alexander M. Beeker
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In July 2014, it was announced that Whiting Petroleum would acquire Kodiak Oil & Gas in an all-stock deal valued at $6 billion. Both companies are headquartered in Denver and operate primarily in the Bakken but in a deal of this size it is possible for executives to hold ulterior motives for mergers such as higher compensation and golden parachutes. Acceptable motivating factors for engaging in a merger include cost savings through synergies and economies of scale, increased market power, asset diversification, and price volatility. A net asset valuation was used to help determine if shareholders should vote in favor …