How BP Amoco/Arco Combined Assets Would Look [214,086 bytes]
Supermajor BP Amoco plc, itself the freshly new product of a merger, has agreed to combine with ARCO in a $26.8 billion merger that would create the world's second-biggest petroleum company.
The all-share transaction, approved by both companies' boards at presstime last week, will involve the exchange of 0.82 BP Amoco American Depositary Share (ADS) for each ARCO share.
At BP Amoco's closing price of $100.44/ADS on Mar. 26, this valued ARCO at $26.8 billion, or a premium of 26%. Based on the closing prices for both firms Mar. 31, the premium was 13%.