RE: Good short target?my quick thoughts. I own both companies big way (LEO even more). I will vote against in June.
run up in the price of LEO is not related to the deal. LEO deal was too small for anything like that. (the last friday's move is different though) note that in this period LEO went up too - as did the overall market and risk appetite...
it was just an opportunistically done deal because LEO management is a bunch of idiots. if there ever was bad management this is the one (btw I own LEO only recently after big insider buys and AOI's strategic moves...)
AOI's plan is the same as of any company partly owned by Lundin, i.e. grow organically and by acquisition on cheap, consolidate, develop a bit if needed and sell for multiple. venture capital at its best.
AOI is definitely consolidating the area.
AOI has enough cash now so they may not need to farm out % for multiple% drilling commitments anymore. Still they may do it to bring interest of somebody who would ultimately buy them out, i.e. Chinese or TLW.