Exxon MobilKAREN BLEIER/AFP / Getty Images
Exxon Mobil Corp.'s proposed $2.6-billion takeover of Canadian natural gas producer Celtic Exploration Ltd. is about as clean cut as they come.
There were no third-party bidders, no prolonged arguments over price. Exxon simply approached Celtic, conducted months of due diligence and then made an offer. The whole time Celtic was happy to talk to them, and when the proposal came in, the board said yes within three days.
Talk about easy fees for the advisers.
Contrast that with Petronas's bid for Progress Energy. Progress held talks with numerous third parties about the possibilities of natural gas joint ventures, including with a "multi-national oil company," according to its circular. Progress even signed a confidentiality agreement with a company that wasn't Petronas and received an offer.
Petronas ultimately won the bidding war, of course, but it had to fight.
Exxon, on the other hand, pretty much did whatever it wanted, according to Celtic's circular. The American firm first approached Celtic to chat about potential business opportunities in February, then signed a confidentiality agreement in April. From there the potential bidder had almost six months to poke around, all without the threat of someone else coming in.
ExxonMobil finally submitted its formal offer in early October, and three days later it revised the terms to get Celtic onside. The board liked what it saw and recommended the bid.
Not exactly a hard fought battle. But then again, not every M&A deal needs to be.
Tim Kiladze