RE:RE:RE:RE:COS and MEG takeoversshambano1 wrote: I guess it depends on what happens with the pipeline. I'm sure any acquirers of Meg will want to keep the pipeline. Now Meg has had lots if interest in their pipeline and infrastructure assets but maybe they are shopping the whole company as well just to see the range of prices and in case they get an unwanted hostile and that way they would be prepared This is a great management team, so I think they will look at all avenues before making s decision on selling pipelines. But I agree, 20 seems a very high premium to pay during low oil prices. I'd be happy with 15-16. Dyodd
The pipline sale shouldn't change much (from an offer standpoint). Let's assume they get 1.5 billion for thre line. That leaves about 6.4 billion in market cap and debt, now you add 50% on 2.7 market cap and the offer needs to be 7.75 billion. Sounds about right if we assume MEG gets a 1.15 billion premium over COS for their reserves.