Exxon and Mobil Agree Record Takeover Deal
Tomasch, Paul, The Birmingham Post (England)
Stockholders of Exxon Corp and Mobil Corp yesterday approved combining the two companies to create the world's biggest investor-owned oil company.
The move calls for Exxon to acquire Mobil in a deal valued at $87 billion (pounds 52 billion), making it the largest corporate takeover in history.
In separate meetings at two hotels in Dallas, near Exxon's headquarters in suburban Irving, Mobil shareholders backed the deal by 98.26 per cent and stockholders of Exxon gave it 99.2 per cent support.
The new Exxon Mobil Cor. had combined 1998 revenues of $171.3 billion, according to their annual reports, and will have a market capitalisation of about $286 billion.
Exxon's shares were trading $2.56 lower at $79.31 on the New York Stock Exchange. Mobil's shares were three dollars lower at $100.06 in generally lower market.
The reuniting of two former members of John D. Rockefeller's Standard Oil Co family must still be approved by antitrust regulators.
At the Exxon meeting, a handful of the about 700 shareholders attending voiced objections to aspects of the deal, citing Exxon's environmental record, concerns about job losses and monopoly power, which they fear the giant corporation could exercise.
"The board and management would like to express its appreciation to you for your overwhelming support of what is a truely historic event," Exxon chairman and chief executive Mr Lee Raymond, who will head the newly created Exxon Mobil Corp, said after the Exxon vote.
Exxon is the largest US oil company and Mobil is the second in the nation and fourth in the world among publicly help oil groups. State-owned oil companies in many oil producing nations are larger in terms of oil reserves and production. …