RE:Obsidian lowers minimum tender condition for Bonterra offer"worth noting that even this trading has been exceedingly thin "
Certainly on the BNE side. OBE has traded over 2% its float in a few trading sessions before today. At this point, seems like OBE has more liquidity than BNE
"this deal only benefits Obsidian's major shareholder"
And who is this? Dr. He (10%) is the largest holder and has no represntation in management or board. Next up is the Kernaghan family (5%). Then would be #3, Steve Loukas/FF (5%)
How does this continuing saga recommend either Obsidian or its management to Bonterra shareholders at all? Or Obsidians’, for that matter.
OBE has clearly indicated that they want new management to the best of the best, and would not be Steve Loukas as CEO. And if this was really a concern, then you "engage". Engage to fix these social issues.
Obsidian offer has been a load of hot air from the start.
The offer ratio is now more or less at par. Do BNE's shareholders not see what is going on around them? Three more mergers announced over the weekend. There is zero investment interest for small oil companies. Why? They offer no dividend (BNE cannot do one for a long time after taking BDC money) and they do not want to invest in growth (shoot yourself in the foot), and banks are not friendly with them anymore for financing. Every month is a close call. Do BNE's shareholder not want to merge with anyone? No compteting offer has come about by the way.
Let’s be clear up front: whatever superficial appeal Obsidian’s concept has, it fails because Obsidian’s track record is as a seriously failed company.
Do you think Fink has done a good job recently? Fink keeping the dividend nearly put you out of business. Instead of cutting the DIV, you had to resort to taking high interest term debt. More leverage? Looks at OBE's last 4 quarters and its debt and cash flow and production. Plot them up against BNE. But who cares, a transaction is about moving forward. People are not looking back but forward. If the snergies are beleived than this is a slam dunk for both companies who trade at a fraction of the synergies. These synergies flow to the equity. Going forward, you have new management too. Both Steve and George are out.
Accepting this eye-wash begs the question of how this will be achieved without new capital to finance the investment that would be needed to effect these changes.
Do you think financing becomes easier or harder with a lower breakeven and higher production?
So who would be in charge of the hard work and detail of turning this vision into a reality?
The best of the best available. Tons of companies have merged now with good management looking for jobs. There is plenty of options.
Takeovers need committed management and committed capital. Obsidian has neither; so what is its game here?
The game plan here is new management and new financing. But we need engagement first. Let us know you want to get it done and rest with come in order
Just my bias thoughts as an OBE shareholder. I want to investors to look at our names again and judging by recent events, Steve Loukas was correct and early demanding consolidation. These two companies have the most synergies. That is the fact. Why not dance?