UPDATE: Barclays Downgrades Nexen Inc. (NXY) to Equalweight; Limited Upside and Chances for Competing Bid

(Updated - August 30, 2012 1:55 PM EDT)

Barclays downgraded Nexen Inc. (NYSE: NXY) from Overweight to Equalweight with a price target of CDN$27.00 (from CDN$24.00).

Analyst, Thomas R. Driscoll, said, "We believe that a competing offer is unlikely given the price paid and nature of the agreement, including a $425MM break fee. Given 8% upside to our revised target price, we are downgrading NXY."

NOTE - On July 23, 2012, CNOOC (Nasdaq: CEO) announced it would acquire NXY for $27.50/share.

Driscoll did mention that there is still government approval pending. Gov't approvals would include Canada, U.S., U.K. and Nigeria.

For an analyst ratings summary and ratings history on Nexen Inc. click here. For more ratings news on Nexen Inc. click here.

Shares of Nexen Inc. closed at $25.41 yesterday.

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