U.S. natural gas company Chesapeake Energy Corp (CHK.N) said on Wednesday that its tender offer for Bronco Drilling Co Inc (BRNC.O) had been extended as part of a shareholder lawsuit settlement over the proposed takeover. Chesapeake said in April that it would purchase Bronco for about $315 million, or $11 per share, as part of a plan to increase ownership of the rigs it uses to drill wells. The cash tender offer, originally expected to expire at midnight on May 23, will now expire at midnight on May 31. "The proposed transaction is the product of a flawed process that is designed to ensure the sale of Bronco to Chesapeake on terms preferential to Chesapeake, but detrimental to plaintiff and the other public stockholders of Bronco," said the lawsuit filed in Delaware Chancery Court. Shares of Chesapeake rose 2.3 percent to $29.75 on the New York Stock Exchange. Bronco rose 1 cent to $10.99 in late morning trading on Nasdaq.
Chesapeake Energy Corporation (Chesapeake) is a producer of natural gas in the United States. Shares of CHK traded higher by 2.41% or $0.7/share to $29.79. In the past year, the shares have traded as low as $19.62 and as high as $35.95. On average, 12939400 shares of CHK exchange hands on a given day and today's volume is recorded at 3893779.
Bronco Drilling Company, Inc. (Bronco) provides contract land drilling and workover services to oil and natural gas exploration and production companies throughout the United States. Shares of BRNC traded higher by 0.18% or $0.02/share to $11.0. In the past year, the shares have traded as low as $3.25 and as high as $11.63. On average, 653357 shares of BRNC exchange hands on a given day and today's volume is recorded at 88069.
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