What This Hess Move Tells Us
Hess (HES) has announced plans to sell its terminal and refining business, and that triggered a big rally in the shares this morning. But more important is what this says about the oil majors, and what Hess' move says about where to find better values in the integrated space.
Hess has an enormous refining business with 20 storage terminals, including its Port Reading, N.J., refinery. On Monday the company said it's putting it all up for sale, having appointed Goldman Sachs (GS) as its agent for these transactions -- and the Street likes it. Shares climbed 6.5% in opening trading, continuing a big run that began in early December that, in all, has launched shares by more than 22%. Elliot Associates, the hedge fund of super investor Paul Singer, sent a letter to the Hess board announcing that he'd like to purchase a further $800 million worth of shares....367 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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