RE:RE:Poor AssumptionsKeithR39 wrote: On the other hand Kensho, why Delek is ready to buy all the shares?
Keith, not sure of your point but if you mean what are the reasons that IAE management is willing to sell the company and Delek is willing to buy, there is plenty of information in the management circular that's been sent to shareholders. Among other reasons, but I think the most salient, is the need for a serious cash infusion for IAE going forward. Delek has the cash to make IAE work, IAE does not and will not given the current market conditions and the estimated life of the Stella field. The only way that I can see IAE going forward on its own is for one of two things to happen. Either the price of oil sky rockets into the $75 - $85 range this year, AND/OR, IAE dilutes the share base again to raise capital to buy up cost reduced properties. For IAE to go forward they need to be a buyer now, not next year and there after. The only way they become a buyer on their own is to sell more shares to generate the dollars to buy. This point is made very clear in the cirular and in my mind it is the most important. Delek on the other hand has the cash on hand to buy whatever they want and once they have the company (if that happens) they will start buying up properties around the GSA.