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Strength In Crescent Point Due To Report Of An Activist Investor

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Strength In Crescent Point Due To Report Of An Activist Investor

Shares of Crescent Point Energy Corporation Ordinary Shares (NYSE: CPG) spiked higher Friday.

Crescent Point, a Canada-based oil and gas exploration, development and production company, was identified by DealReporter as being the target of an unnamed activist investor.

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.

Related Link: British Columbia Could Become A Major Oil Player

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.

Posted-In: Canada Crescent Point Energy dealREPORTERM&A News Rumors Best of Benzinga

 

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