02:00 PM EDT, 05/17/2024 (MT Newswires) -- (Updates with Hess comment in the sixth paragraph)

Hess (HES) shareholder D.E. Shaw intends to abstain from voting on Chevron's ( CVX ) planned $53 billion takeover of the oil company, Bloomberg reported Friday, citing Managing Director Jason Singer.

D.E. Shaw is one of the top 15 shareholders in Hess, according to the report.

Singer said D.E. Shaw would support Institutional Shareholder Services' motion to delay voting on the deal until there is more clarity around Chevron ( CVX ) and Hess' arbitration case with Exxon Mobil ( XOM ) . Another Hess shareholder, HBK Capital Management, also supports the motion, the report added.

"The transaction, as currently structured, doesn't contemplate the time it takes to arbitrate with Exxon," Singer was quoted as saying. "As long-term holders, we believe Hess is a high-quality company with attractive assets and a bright future."

"We look forward to Hess obtaining a successful shareholder vote and completing the transaction," Chevron ( CVX ) told MT Newswires.

"We have strong shareholder support for our merger and are confident the transaction will be successfully completed," Hess said in a statement to MT Newswires.

D.E. Shaw did not immediately respond to MT Newswires' request for comment.

Hess shares rose 0.7% in recent trading Friday, Chevron ( CVX ) gained 0.8% and Exxon Mobil ( XOM ) climbed 1.2%.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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