Chevron-Hess deal arbitration decision expected soon, BofA maintains buy

Published 10/07/2025, 12:16
Chevron-Hess deal arbitration decision expected soon, BofA maintains buy

Investing.com - BofA Securities has reiterated a Buy rating and $170.00 price target on Coventry Health Care (NYSE:CVH), currently trading at $5.22 with a market cap of $940.61M, as arbitrators may have reached a decision on the legal dispute surrounding Chevron ’s (NYSE:CVX) acquisition of Hess (NYSE:HES). According to InvestingPro analysis, CVH appears slightly undervalued with a GOOD Financial Health Score of 2.63.

Media reports indicate that after nearly two years of delays, a resolution to the arbitration is expected shortly, according to BofA Securities analyst notes.

The dispute centers on claims by Exxon (NYSE:XOM) and CNOOC (NYSE:CEO) that they hold rights of first refusal to purchase Hess’s stake in the Stabroek block in Guyana, where they are partners.

BofA Securities outlines two possible outcomes: either the right of first refusal clause will be found not applicable in a full corporate takeover, allowing Chevron’s all-stock deal to close imminently, or the clause will be found to apply, effectively meaning only Exxon would be able to acquire Hess.

The Chevron-Hess deal has already cleared Federal Trade Commission antitrust review and received board and shareholder approval, leaving the arbitration decision as the remaining hurdle.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.