RE:RE:RE:RE:nice move up so far in the UKRegarding the price of oil. The current price of oil will should be a big factor in the buy out price. We are going through a relatively brief post over supply high inventory phase in which balance sheets of oilers and oil states are undergoing continuing stress and forward development projects have/are being slashed on a scale that has never been seen before.
While the current low oil price clearly affects investor sentiment, there is no way that the likes of Delek will value Ithaca on the basis of a few more months of low prices. There is of course the danger that the institutions holding Ithaca do exactly this. Even though Delek would clearly prefer not to bid on the basis of a very significant premium (i.e. over 100%), one would think that this must be an option that they are considering.
Then again Delek are part of the Ithaca board and if the Ithaca board overall is not backing a lower bid then presumably that is a difficult situation for Delek - not acting in shareholder interests etc. Then again if shareholders back a lower bid, which they may at the current time due to quite bearish sentiment, then the shreholder interests concern is irrelevant is it not?
Doug