Strength In Crescent Point Due To Report Of An Activist Investor
Shares of Crescent Point Energy Corporation Ordinary Shares (NYSE: CPG) spiked higher Friday.
As noted by Canada's Business News Network, the DealReporter report cited an investment banker familiar who was familiar with the matter. The banker told the publication a firm is accumulating a stake in the company.
An activist stake wouldn't come as a surprise to some investors, as Crescent Point has seen its stock lose more than 10 percent since the start of 2017 and is significantly below 2012's level is near $50 per share.
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However, BNN noted Crescent Point has a large institutional investor base, which would make an activist battle difficult. DealReporter's source also highlighted the fact the activist investor may not be successful in achieving a controlling stake in the company.
The Globe and Mail, another Canadian news publication, noted Crescent Point issued C$650 million in stock last September and was met with a "lukewarm response" by investors who criticized the dilution nature of the transaction.
Shares of the Toronto-listed Crescent Point gained nearly 6 percent following the report.
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