NEW YORK (TheStreet) -- After rumors circulated yesterday suggesting that Exxon Mobil (XOM) could seek to buy energy exploration and production company Anadarko (APC), JPMorgan said it believes that such a deal is unlikely to occur.
WHAT'S NEW: In March, Anadarko estimated that its net asset value was over $140 per share, JPMorgan analyst Joseph Allman stated in a note to investors earlier today. Consequently, the company is likely to demand a purchase price significantly above that level in any takeover deal, Allman wrote. However, since the company's stock closed at only $108 on Wednesday, a potential buyer would have difficulty justifying a purchase price significantly above $140 per share, the analyst contended. Moreover, few exploration and production companies have been acquired in recent years, added Allman, who has an Overweight rating on Anadarko's stock.
PRICE ACTION: In early trading, Anadarko was up 0.5% to $108.90. Anadarko shares had advanced more than 4% yesterday.
Reporting by Larry Ramer.