GREY:NOVUF - Post by User
Comment by
kutraon Jan 01, 2013 2:01pm
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Post# 20786677
RE: RE: RE: RE: RE: Teine Energy
RE: RE: RE: RE: RE: Teine Energy Gaswell,
Putting the sale sign out may or may not be a good sign. It is a way of increasing intrest and forcing potential bidders to make an offer at a certain time. If it is done out of necesity and the asset is going to be sold for whatever they can get because the seller is out of cash then yes it is a bad sign. That is not the case here. Management has had numerous expressions of intrest in the past they are selling now becasue they believe that at around 4,000 bpd there is a step change in valuation.
The goal of this process is to get multiple parties intrested and create compition between them and hopefully bid up the price. This process gives all potential suitors equal footing. Anouncing an offer by one buyer will discourage other parties from making an offer.