KeyBanc Downgrades XTO Energy (XTO) to Hold; Merger with XOM

December 22, 2009 7:37 AM EST
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Price: $41.81 --0%

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    0 Buy, 0 Hold, 0 Sell

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    Up: 5 | Down: 5 | New: 0
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KeyBanc downgrades XTO Energy Inc. (NYSE: XTO) from Buy to Hold.

KeyBanc analyst says, "Downgrading XTO now as the share price is now linked to ExxonMobil's (NYSE: XOM) share performance, given that it is a stock-for-stock structured merger. As a reminder, last week the companies announced the agreement in which XOM would acquire XTO for approximately $41 billion in an all-stock transaction, including the assumption of XTO's $10 billion of debt. Under the terms of the merger agreement, XTO will receive 0.7098 XOM shares for each common share of XTO stock. At the time of the announcement, XTO shares were valued at $51.69 per share. Based on yesterday's closing price of $68.51 per XOM share, XTO shares are valued at $48.62 per share. We expect near-term XTO share performance to be closely tied to XOM stock performance. Consequentially, we believe at the present a HOLD rating is more appropriate."

To see all the upgrades/downgrades on shares of XTO, visit our Analyst Ratings page.

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