Amerada Hess to Buy Triton for $2.7 Billion
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Oil and gas company Amerada Hess Corp. agreed to buy global exploration and production company Triton Energy Ltd. for $2.7 billion in cash, advancing its shift toward the more profitable exploration and production side of the business.
With the purchase, Amerada Hess gains a company known for blockbuster oil discoveries. The deal will lift the New York-based company’s output to about 535,000 barrels of oil a day next year from 425,000 barrels. Production will climb to more than 600,000 barrels a day in 2003.
Amerada Hess will pay $45 in cash for each share of Dallas-based Triton, a 50% premium to its Monday closing price. It also will take on $500 million of debt.
Triton’s stock jumped $14.53, or nearly 49%, to close at $44.43 on the New York Stock Exchange.
Shares of Amerada Hess fell $2.01 to close at $77.35 on the NYSE.
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