TSXV:ART.H - Post by User
Comment by
Baxter4on Apr 15, 2010 12:21pm
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Post# 16995492
RE: RE: George Soros is buying VST
RE: RE: George Soros is buying VSTA merger of VST and LFD would need shareholder approval before it can be done. If it was announced today, it would be the end of June before the vote would happen. By that time VST should have some early results of the drilling which (with fingers crossed) the upper oil pools will be confirmed and VST shares will be shooting upwards.
How do you value each company. VST has a current diluted market cap of $260 MM while LFD is only $26.5MM. So in a merger each LFD share would get 0.5 VST shares. Now what would happen if VST goes to the much talked about $3 after early drilling results are released. VST would then have a market cap of $876 MM while LFD would still be at the same level. No VST shareholder in their right mind would approve the merger in this case.
That is why I don't believe there will be a merger anytime in the next 5 years. George Soros is buying LFD on its' own merit, and so am I.