GREY:LSTMF - Post by User
Post by
kmappon Dec 17, 2014 12:42am
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Post# 23238749
other bidders may now move on to other targets, LTS??
other bidders may now move on to other targets, LTS??
FP article, Why Talisman Energy Inc is the first — but not last — victim of the oil price slump
Athabasca Oil Corp., Penn West Petroleum Ltd., Lightstream Resources Ltd., Legacy Oil & Gas Inc. are among names that are seen as vulnerable.
With share prices at garage-sale levels, the whole Canadian energy sector is vulnerable to being picked on by anyone with a war chest, expectations of an oil price recovery or better ideas on how to create value.
“The likelihood for high-profile M&A transactions is almost a guarantee,” said Sonny Mottahed, CEO and managing partner of Black Spruce Merchant Capital in Calgary. “In the environment that we are in today, where you have equity prices reacting dramaticallyto the drop in the commodity … the intrinsic value of a lot of these companies is far greater than what the market is valuing them at.”
In anticipation of more consolidation, investors pushed up many battered Canadian energy names, with Encana Corp. bouncing 7.4% to close at $14.53, Crescent Point Energy Corp. gaining 10% to close at $24.13; Baytex Energy Corp. gaining 5.7% to $16.21, and Whitecap Resources Inc. gaining 5.4% to $10.99.