Concho Resources (CXO.US), a company engaged in hydrocarbon exploration, surged during today’s session as the firm is reportedly in talks to be acquired by ConocoPhillips (COP.US). According to Bloomberg, the companies might announce a deal in the next few weeks, but no final decision has been made and talks could fall through. While Concho Resources has a market value of about $8.8 billion, ConocoPhillips is worth nearly $38.2 billion. The potential transaction could become the year’s largest takeover of an oil and gas company as ConocoPhillips, one of America’s biggest independent oil explorers, looks to make a bold bet on shale amid the ongoing industry downturn.
Concho Resources (CXO.US) stock broke above the 50-day moving average (purple line) as shares are rising over 13% at press time. As a result, price returned above the 23.6% Fibo retracement of the slump started in January. Source: xStation5