Continental Resources Inc announced on Tuesday that it had received an all-cash offer from billionaire founder Harold Hamm’s family trust, valuing the US shale producer at $25.41 billion.
Continental’s shares jumped as much as 17% to $75.49 their highest level since September 2014 after an offer was made by oilman Harold Hamm.
Hamm, a legendary oilman who once called the Organization of the Petroleum Exporting Countries a “toothless tiger”, is offering $70 per share for his family’s 17% stake in Continental.
The offer represents a nearly 9% premium over Continental’s closing price on Monday but is below the level the producer was trading at as recently as last Thursday.
Continental says it will form a special committee of independent directors and hire advisors to consider Hamm’s proposal.
Hamm founded Continental as Shelly Dean Oil Company in 1967 and ran it as a private company until 2007.
In a letter to employees, Hamm lamented the public markets have not supported the oil and gas industry and limited its growth.