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Vero Energy Inc T.VRO



TSX:VRO - Post by User

Comment by filefishon Nov 06, 2012 5:59pm
664 Views
Post# 20569745

RE: Why are shares not trading closer to $3?

RE: Why are shares not trading closer to $3?

The 3.00 price calculation is an implied price based on the conversion of VRO shares to TORC shares. This is not a tender offer where cash or stock is being issued to VRO holders at a specific price. The equilibrium price now seems to be $2.65 based on the millions of shares that have recently traded at or within a few cents of 2.65. The difference between the 3.00 and 2.65 is the current arbitrage discount. The new TORC will have a ton of cash to immediately start drilling like crazy. Unless TORC's Alberta Bakken lands are a complete bust, I think that this deal will eventually work out well for VRO shareholders who continue hold their stock. 

  

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