Why Equinor Stock Slumped on Monday
Oil and gas companies might be riding a long-tail boom these days, but you wouldn't know that from the latest action in (NYSE: EQNR). The Scandanavian energy company didn't do well on Monday, sinking by 3% in price on news of a fresh acquisition. The S 500 index also landed in negative territory, but not as deeply, as it fell a comparatively benign 1%.
Equinor's major news item that day was the deal it struck to buy a minority stake in Ørsted (OTC: DNNG.Y), the largest energy company in Denmark. Ørsted is known for being a top green energy company, not only in its home country but throughout Europe, and is particularly strong in wind energy, a segment in which Equinor is also active. Equinor has acquired just under 4.2 million shares of the company, giving it a nearly 10% ownership stake with a corresponding voting share.
The largest single shareholder of Ørsted is the Danish state.
Source Fool.com
