TSXV:WEE.H - Post by User
Comment by
BenVest99on Dec 17, 2009 9:34pm
425 Views
Post# 16599482
Take-over - don't think so
Take-over - don't think soWEE might be viewed as a take-over target by some, but I think that at this point in time management and big investors like Sprott will not be willing to sell at this time. It is management's job at this time to make sure that they won't be victim of an hostile take-over given the potential they have in their hands.
If OMERs wants to buy a few million shares that would just be fine. But for them to take-over an oil technology company would not be wise IMO. They better let current management handle things at this time because the expertise they have developed with this technology is crucial for the success of the company.
The real take-over target at this time is Cenovus if what you read and watch on TV is right. If they know that they are a take-over target, it would surely make sense for Cenovus to accelerate their Powerwave deployment in order to increase their reserves so that their take-over valuation would take into account the additional reserves. Conoco Phillips is perceived as the company that has Cenovus on its radar screen. If it happens, Conoco Phillips would be another top producers using Powerwave and, based on the results achieved in Alberta, they could very well decide to expand to their other oil fields. This would surely be the ideal scenario for WEE.