$6.50 is way to cheap For all the clowns out there that think CPG didn't get a deal of a lifetime...lowest priced deal of the year...Read below.
FP says Crescent's move on Legacy heralds other deals
2015-05-28 07:11 ET - In the News
See In the News (C-CPG) Crescent Point Energy Corp
The Financial Post reports in its Thursday, May 28, edition that Crescent Point Energy's purchase of heavily indebted Legacy Oil + Gas Tuesday could be the signal that more deals in the energy sector are on the way. The Post's Geoffrey Morgan writes that this week's deal shows that buyers can now take out heavily indebted companies at significant discounts. The Crescent Point offer represented a per-share price for Legacy of $2.83 -- well short of its 52-week high of $10.03. Debt-burdened companies including Lightstream Resources, Penn West Petroleum, Connacher Oil and Gas, and Long Run Exploration could become targets, as larger buyers become active. Haywood Securities analyst Darrell Bishop expects more purchases over the course of the summer. Mr. Bishop says now is "an opportune time to pick up what are good assets while (indebted) companies are struggling." The Legacy acquisition, he says, "puts the benchmark out there for what would have been the lower transaction metrics for what has gone on so far this year." FrontFour Capital's Zachary George criticized the deal. He says Legacy showed "poor negotiating skills" and "this looks like a highly accretive, phenomenal deal for Crescent Point."