RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:News Releaseitsalie wrote:
forming a special commitee and evealuating the deal is great.. just not sure why you would tell the market that.. clearly that is the only reason the stock is up 13% today.. the market didn't suddenly get smart monday morning and realize is undervalued.. again.. they could just as easily say tomorrow we changed our minds.. and then timber.. despite it being undervalued .. just seems odd to me to announce such a thing..
The Announcement was made because Longview is required to;
“CALGARY, Feb. 10, 2014 /CNW/ - Longview Oil Corp. ("Longview" or the "Company") announces today that it has received an unsolicited non-binding proposal (the "Proposal") from a public oil and gas company (the "Interested Party") to purchase all of the issued and outstanding shares of Longview ("Longview Shares"). Under the non-binding Proposal, the Interested Party proposes to purchase the Longview Shares in exchange for shares of the Interested Party. The Proposal is based on an exchange ratio representing a premium to the closing trading price for the Longview Shares relative to the closing trading price of the shares of the Interested Party on the date the Proposal was received.
Longview is required by applicable securities laws to disclose the Proposal as Longview will be filing its short form prospectus later today in respect of the distribution of its common shares held by Advantage Oil & Gas Ltd. pursuant to a secondary offering (the "Secondary Offering").” Think of this like a Baseball Game;
The first pitch has been thrown.
We don’t know if it is in the strike zone or not.
The BOD has fouled it off (The Shareholders Rights Plan).
The “Rights Plan” is designed to give the BOD the time to evaluate to offer and attempt to negotiate an offer that they can support.
At some point the BOD will have to disclose the terms of the offer and their opinion of it.
Regardless of whether the BOD supports the offer or not it will be the Shareholders that will decide to accept it or not.
These things can take some time and if it turns into a “Hostile Bid” has the potential to get quite messy.
My concern is the fact that abt. 50% of the shares that will be eligible to vote on a deal were recently purchased for $4.45.
These Shareholders may be willing to accept a price somewhat lower than the rest of us would for a nice quick short term profit.