Chesapeake buys Canaan Energy for $118 million

The Journal Record | April 23, 2002| | Copyright

After months of haggling, Chesapeake Energy has reached an agreement to acquire Canaan Energy for $118 million, it was announced Monday.

The announcement sent Canaan's stock soaring 28 percent on Monday to close at $17.78, up $3.89. Before Monday's surge, Canaan's 52- week high was $14.50.

Chesapeake was down 1 cent to $8.03 on Monday.

Chesapeake has agreed to acquire the 4.5 million shares of Canaan common stock that it does not already own for $18 per share in cash.

"This acquisition fits perfectly with Chesapeake's business strategy of creating value by acquiring and developing low-cost, ...

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