RE:Competing offers
An option that I thought about is CPPIB. They know the company in and out and own the $200 million U.S. in unsecured notes. They were the other player looking at buying Talisman in late 2014. For comparison purposes, the bid made by Repsol at $8 U.S. meant an enterprise value of $13.5 billion U.S. and here we are talking about $1.53 billion CAD. If Mr. Wiseman was willing to contemplate at all an offer for Talisman, then they are more than capable to swallow a Legacy. He mentioned publicly his interest for energy investments and looking at opportunities with distressed companies. The problem is that I am not sure they would be willing to compete against a Canadian firm such as Crescent Point unlike Repsol which is Spanish. On the other hand, I could see them teaming up with another Canadian firm since there is a lot of long term money to be made here. This company does not have an operational or problem with its assets its purely a financial structure issue. The bid is very low. It has to be obvious to any energy player out there or to any of the private equity firm that were looking to capitalize on the downturn. $55,000 U.S. per flowing barrel is unheard of in the Bakken.