RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:BTE vs MEG Yes, they "walked away" but only after realizing they were going to lose. It was like quitting mid game they challenged someone to when they saw that they were going to get their heads handed to them.
They didn't have the support of the MEG execs, that's for sure because they tried a private deal for years before going hostile. But then their ground research showed that they weren't going to get the shareholder votes to win the hostile bid. Specifically, they could not garner support from institutional shareholders who were carefully coached about the value of MEG by the MEG exec team. MEG fought for the company.
And all that with them trading at $5-$6/share. There would have been a signficant premium at $8 for shareholders to grab and run, but the executives and shareholders were wise to the tactics and knew the value was much greater than what the market was assigning. We are now witnessing that.
I've owned MEG since back then and added in Spring 2020. It's a great company. Well run and doing everything right in the current multi-year bull run.
It's a great example of the importance of patience. Everyone wants fast money, but mega profits take time and patience. The same goes for BTE. In the context of a decade, BTE is on the cusp of mega gains sending the stock well into the double digits. But that is going to take at least a few months, maybe as long as 12-18 months depending on what happens to the US economy.
Most people's investment timeline on here is a few weeks, a few days, or even a couple hours for some. There is no chance they will get to experience the mega gains that these stocks are going to deliver.
Moemoney42 wrote: I guess my memory is still intact.. LOL.. MEG plunges 37% after Husky walks away from hostile takeover bid
Husky Energy Inc. abandoned its hostile bid to acquire MEG Energy Corp., which has a market value of $2.53 billion, after failing to win support from shareholders and the board of the rival oilsands producer. Moemoney42 wrote: Going by memory here.. and you know how that can go (LOL) but... wasn't it Husky that walked away from the Meg buyout.. that's the way I remember it..? Or was Meg holding out for a higher price.. but in a hostile T/O did Meg have the ability to actually fight it off? riski wrote: Yes good point. MEG fought that $8 hostile bid tooth and nail and prevailed. HSE was being opportunistic. That's what I worry about. I'm sure the offers are coming to MEG's execs on a monthly basis, but they know the real value is in keeping things small and maximizing torque. It's probably only a matter of time until we see another hostile bid. The assets are too good and the value is very cheap by historical standards.
My bet is CVE once the new CEO fully settles in.
jleer42 wrote: Going back, but Husky couldn't buy MEG. It was due to larger long term holders who understand the value of MEG. I expect an aquisition would still not go through unless it fully valued MEG's future. Probably safe until there is a re-rating in O&G, until then other companies will be the aquistion target.
riski wrote: I think MEG is the MOST LIKELY company in the oilpatch to get taken over. All of CVE, CNQ, and SU would love to have MEG, with CVE being the most logical acquirer due to economies of scale.
This is my biggest concern in owning MEG. One of the megacaps is going to swoop in and take them out for 25% premium leaving all kinds of returns on the table that would have been realized in the next 18 months.
MEG is an easy double from here by next year if WTI holds - not increases, just holds above $70.
Antonyius wrote: No one is going to acquire Meg at these oil price environment and company valuation. It's just not a good deal for the acquirer. Meg themself won't sell because they're making good money. Baytex or AOC would be an acquisition target IMO before baytex did this ranger deal.