GREY:WFREF - Post by User
Post by
uogradon Feb 14, 2016 12:19pm
185 Views
Post# 24557532
just a little refresher
just a little refresher
A year ago at this time Repsol was in the middle of taking over Talisman for $8 u.s. Now there is no doubt that Repsol paid way too much for Talisman and the price of oil tanked considerably from the time the deal was announced until in fact the deal was closed.
As a result there was great fear in the market that Repsol would walk away or renegotiate. As a result Talisman traded at a significant discount to $8 dollars for months up until the deal was closed.
buying talisman at a discount and holding proved to be a very successful exercise in investing.
this deal is way, way tinier than the massive Repsol/talisman deal and reality is Sino are actually not putting up a whole lot of cash to buy the common shares and debentures. Repsol put up a ton of cash.
chances of this deal getting done are pretty darn good so a 50% discount is likely too high and buying now like as with the Talisman deal will likely be a nice financial reward for those involved.