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vern117on Dec 23, 2008 6:59pm
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Post says analyst figures odds of Oilexco sale 50:
Post says analyst figures odds of Oilexco sale 50:Post says analyst figures odds of Oilexco sale 50:50
2008-12-19 09:11 ET - In the News
TheFinancial Post reports in its Friday edition the outright sale ofOilexco is the only way the North Sea E&P company can stave offbankruptcy, according to a new report from Tristone Capital in London.The Post's David Pett, writing in Trading Desk, says analyst TobyPierce argues that finding someone to make a bid may prove too tall anorder. "A corporate sale is the route left to maximize shareholdervalue," Mr. Pierce said in a note to clients. "The logical buyers for acompany of Oilexco's size are limited given the relative size of theportfolio, and the unprecedented tightness in markets." Mr. Piercenoted that Oilexco has enough cash to last until Jan. 31, 2009, thanksto a new $47.5-million (U.S.) bridge loan announced Wednesday. Afterthat, it appears that short of a sale, Oilexco would be forced intobankruptcy. Mr. Pierce lowered his 12-month price target on the stockfrom $3 to $1.58. He also downgraded the stock from "market perform" to"under perform" based on a 50-per-cent chance Oilexco will go bankruptand a 50-per-cent chance it will be sold.