Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of oil and gas explorer Venoco (NYSE: VQ ) jumped 17% today when word leaked out that its CEO is lining up financing to buy the company.
So what: CEO Tim Marquez, who owns 50.3% of shares, has offered to buy the remaining share of the company for $12.50 per share, and he may be moving closer to financing the deal. He is in advanced talks about a $436.5 million package that would include debt, asset sales, and capital raises to buy out the company.
Now what: Since shares closed yesterday at $9.53, the market hasn't had a lot of faith that Marquez's offer would wind up in an actual buyout. But rising energy prices may make a deal easier to pull off; if financing comes through a deal may close as early as September. I don't like betting on acquisitions, but with an offer in place this one looks like a likely deal, so I think shares will move higher in the next month or so.
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