OTCPK:ARNBF - Post by User
Comment by
wordlesson Aug 29, 2012 12:47pm
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Post# 20274765
RE: RE: What's Up????
RE: RE: What's Up???? I don't think it's really all that odd. ARN is pretty much disconected fromt he market right now as it's trading largely on hopes of a buyout and also being punished for its high debt levels and lowered capital spending for the rest of the year.
I too think CPG will take them out but it may or may not be in the next few weeks. If they can come to a mutually benefical agreement, maybe. But it would not surprise me if CPG is waiting to see if ARN stumbles and more int he near future and they might be able to negotiate a lower price for ARN. However, if the waterflood proves to be working as hoped and costs coem down as hoped for their ~$175mil infratructure investment they may actually have to pay full price.
An acquiror also gets that infrastructure for free and alss over $500mil in tax pools that could be worth upwards of $1.00 per share given that the acquiror can reduce their cash taxes buy well over $100mil.