RE:RE:Educate me please....
pierrelebel wrote:
Riverstone Holdings owns 38% of Pipestone Energy
Riverstone has clearly indicated that they will not look or accept any other offer. Since 66.67% of votes are required to accept a takeover and Riverstone voting against any potential new offer with its 38% holdings, the offer by Strathcona makes it a done deal for all intents.
Many questions are unanswered for minority shareholders (us) since no financial information about Strathcona is available at this time. That information was available to Riverstone and the board of directors when they accepted and recommended the offer.
The guys controlling and managing Riverstone are smart who know how to make money (take a few minutes and check their background). They see that merger positively. I trust all PIPE shareholders will eventually be rewarded.
Patience is required here until more information is available - in a few weeks. Anyone selling their shares at current depressed prices will most likely regret it.
"trust all PIPE shareholders will eventually be rewarded."
well, that's a pretty loaded conclusion to dissect eh? trust? Many would disagree.
PIPE ? Remains to be seen, but I'm fairly certain Strathcona will do very well
eventually? Where the heck is the frickin info? This plan hatched on a napkin?
rewarded? Oooh. Hope so, but see above.
let's not forget there is more than one way to acquire pipe. These "friendly" share exchange offers are all the rage because of 2 things. First, everyone believes their shares are way undervalued. So nobody wants to "deal" unless what they will receive is in turn as cheap, or cheaper, than what they already own. Secondly, the entire industry in Canada is in the penalty box with bankers. No bank is keen on financing alternative, more traditional, sometimes exciting, sometimes "hostile" bids. The days of bidding wars with well financed acquirers is long gone. But don't completely abandon the possibility. There are a very very few buyers that can just cut a cheque. A very positive sign for the entire industry would be the reemergence of foreign buyers. IF the assets are as cheap as purported to be, a rival bid could emerge. For cash.