GREY:BXEFF - Post by User
Comment by
samsungjd43xlon Nov 27, 2014 1:17pm
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Post# 23170497
RE:RE:Colonel Sanders' Finest
RE:RE:Colonel Sanders' FinestOrange does not have an endless supply of funds. Relatively speaking they're a smaller hedge fund with about $1 billion under management. With most of it invested from what I understand. Since BXE is hardly distressed, even an unrealist bid would be 50% higher than it is now. So, that's about $1.5 billion plus debt. Their $200 million (so far) investment is not even close to that.
In my opinion, in this oil market, they are going to have a harder time raising the funds or finding a buyer than they would have had 3 months ago. Not impossible, but not likely. They're in it for the longer haul even if they didn't originally plan it that way.
After today's oil drop and yesterday's increased credit line, the chances of a takeout just decreased a lot. They'll be focussing on other ways to increase the SP.