Energy, Utilities & Water  August 20, 2020

Shareholder sues to halt Noble-Chevron deal

SAN RAMON, California and HOUSTON — A Colorado investor has filed suit to stop oil giant Chevron Inc. (NYSE: CVX) from completing its acquisition of large-scale Weld County energy producer Noble Energy Inc. (Nasdaq: NBL) for $5 billion.

In a suit filed in Colorado District Court Wednesday, Noble shareholder David Nuss alleges the two companies don’t provide enough financial information to stockholders to make a fully informed decision on whether to agree to the deal The suit alleges the companies don’t fully explain the assumptions made in their future earnings projections, and don’t reconcile non-generally accepted accounting principle forms with GAAP metrics.

It also accuses the transaction’s financial advisor JP Morgan Securities LLC of not providing additional details on why it decided to release a fairness opinion in favor of the combination.

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All are asking courts to place a halt on the merger until a jury trial can be held.

The suit is one of five other similar complaints filed in Delaware and the Southern District of New York and are relatively common in the aftermath of two publicly traded companies announcing an intention to combine.

Shareholders launched suits with similar allegations against the $1.7 billion merger between Denver-based oil firms SRC Energy Inc. and PDC Energy Inc. (Nasdaq: PDCE) last year, and against Pfizer Inc. (NYSE: PFE) when it announced its acquisition of Boulder-based Array Biopharma Inc. for $11.4 billion.

Both of those deals were completed.

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SAN RAMON, California and HOUSTON — A Colorado investor has filed suit to stop oil giant Chevron Inc. (NYSE: CVX) from completing its acquisition of large-scale Weld County energy producer Noble Energy Inc. (Nasdaq: NBL) for $5 billion.

In a suit filed in Colorado District Court Wednesday, Noble shareholder David Nuss alleges the two companies don’t provide enough financial information to stockholders to make a fully informed decision on whether to agree to the deal The suit alleges the companies don’t fully explain the assumptions made in their future earnings projections, and don’t reconcile…

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