Southern Pacific Resource Corp STPJF

Immediate impact on SP after a sale announcement

[ShatnersRug]

Admittedly, I am green when it comes to this kind of scenario.

Let's say Mr. Lutes steps up to the podium tomorrow and announces "The company has been sold for 40 cents per share".

Would the ensuing halt be indefinite? With shareholders being paid out 40 cents per share?
Would STP continue trading until day X? At which point 40 cents per share would be doled out?

In the event that, instead of a cash settlement, shareholders would be given equity in another, stronger entity? What then?

[Junit290]

I believe that given an outright sale to another public company on would be given a date by which one could either sell their shares for the .40 or receive the equivalent in said companies shares. After which you can sell at any time. Someone correct me if I'm wrong. 

[adamsight]

Well lets say that a salevof .40 occurs and there are no lawsuits it still needs to be voted on by shareholders. It would get a share jump in the market and likely shareholders would hold out fmore. If it was voted for and you didnt fill out the paperwork for their shares or whatever in about 2 months the money would show up in your account A few years back I bought a stock at 1.10 it went ti .25

[CatCatCat]

The halt would come before any announcement from Lutes and come off after announcement The .40c and/or shares would be paid at closing date (you can sell anytime after announcement (although it may not be excepted and we may get more, so its best to hold until closing announced JMO) if you wanted the shares, you would have to wait until after closing and then sell The breakup fee is not normally

[Backwardblade]

That sounds about right,  but then maybe the sale isn't accepted.  Who knows what happens in the back room?.  I'm a little fuzzy on the details, but wasn't the Connagher offer rejected around .75 c or so?  Is there any relevance?

[CatCatCat]

Ive been thinking about this, my guess is there is no deal in the works (companies dont all of sudden announce an end date of strategic reviews) I think once they got the new lien they decided to go it alone. JMO I also think retaining  RBC at ~10k/mth was a waste of money, Credit Suisse came through on the new first lien, it doenst appear RBC had anything to do with that, why didnt they

[farmerman]

Lets say your right cat cat and they are going it alone, why stop capex please explain your theory

[CatCatCat]

Cant...

[ShatnersRug]

LOL!!

[ShatnersRug]

Went a little heavy on the catnip last night, eh?

[CatCatCat]

Shar you should go read some books first before commenting on anything

[ShatnersRug]

Just to be clear, you post a msg claiming that no deal is on the table and make known your opinion that the SP will hit a NICKEL. You go on to mention that you can't explain your reasoning. Eat any good books lately?

[CatCatCat]

how is a deal structured, what happened if we get bought out?...shat, is this your first time investing LOL...you're a rookie

[adamsight]

I guess you are right about shat he is a rookie and you are a toddler. I guess you hide in your cubicle at your meaningless job, making posts just like the ones you ahev made here, on BBoards all over the web. You can't stand up to anyone in your life or your job and act out like you are the man online. You sit in a bar wondering why no one talks to you. By your actions here I would say you

[CatCatCat]

oh comment from Adamsight, who just starting investing a mth ago...and who talks about lawsuits. LMAO...another rookie

[freedom45]

Cat, what is your past connection to the chairman Dave ? Just curious....I'm neutral on your posts so far as they do interest me but it would be best for the board to not get distracted with personalities.

[wittmann]

I on the other hand am not green when it comes to takeovers,or sales of companies ,as I have owned a few that have undergone such events.So to answer your questions Shat,all of the above....but with refinements.Mostly a vote is held with common shareholders having a say for example.The space here is too small for me to go on.,but I will say this ,that most of the posters here are flip flop clowns

[4iron]

Well well old man Wittman has spoken " quit your gumming around kids, heck I remember back when we used a switch to demand respect". Your either a hundred years old and senile or 40 and drunk, either way your blather is useless so go give advice somewhere else. My point, is that Lutes and his band of incompetent henchmen have managed to once again reduce this Share price to penny status,

[wittmann]

You have been chastised by others in the past for personal attacks...I see you learn nothing.And your response is exactly the whining attitude I was talking about  ...but remember its not our  fault that STP is so low....learn to relax and stop blaming the rest of the world for your bad investments.That includes Lutes....give things time and hopefully things will work out.Its obvious by

[4iron]

My "personal attacks" are exclusively directed at big mouth smhucks with condescending comments like "stop blaming the world" and "it's obvious by your history". My investments are none of your concern and STP is the only Company that needs to be commented on. I chose my words with intent not a cavalier " been there, done that" attitude that's

[wittmann]

Condescending attitudes such as you describe are not that at all.I stated abruptly and to the point that  your whining doesnt help.It is understandable though , considering what is or rather isnt happening with STP.When I stated that I have seen this before with other companies ,I cant understand why you take offense to that comment.There is nothing to suggest arrogance on my part at all.I am

[ShatnersRug]

I disagree wittmann. 4iron flares up like a bleeding hemorrhoid from time to time and I enjoy reading posts such as yours in retort.

[wittmann]

Thanks Shat.As a fellow 'oldman' you know what I was talking about.On the brighter side we must remember one important fact.You ,I believe commented about this in the past as well.I am referring to the loan that was made to STP a few months ago. $150 million due 2019. That is a lot of money to lend to a 'struggling' company.It was made with full knowledge of  the review of

[ShatnersRug]

I'm a doctor, not a historian!!

[hudson1234]

Hey Wittman it is interesting to note that the bank loan was given 2 weeks after the incident happened with the ICD, they must have been aware of that and still went a head with the loan.

[bmofoshizz]

I think the Credite Suisse loans for STP and CLL were extended knowing that an impending acquisition was in the cards. The loans give both companies some breathing room and consequently a bit of bargaining power (leverage for leverage). Hence the minor change of control exit fee in both. 

[Eyeinvestor]

Lutes cannot announce "The company has been sold".....because the company is not his to be sold. What usually happens is the chairman of the board of directors announces that...The company has received an agreed offer of 49 cents per share from xyz and your board of directors recommends accepting this offer for the following reasons....The announcement includes a closing date for the

[nikehercules]

Excellent post Eyeinvestor. Sometimes the most difficult thing to do is wait. Part of being a trader/investor is taking a little pain. So, for our in flight STP movie we have "Barbarians at the Gate". We get an idea of what Kravis of KKR was like. Hopefully just a little of his A Game rubbed off on Sageview. {^youtubevideo|(width)425|(height)264|(rel)False|(url)https://www.youtube