Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:Clarity on Preferred Shares

[RagingBull3]

Re-read the Prospectus and the Husky/Cenovus News Release.   IMHO, what you are saying is WRONG.      

Anyways, bottom line effectively Husky will be winding up its affairs and be no more.    You can try to call it a "merge" and say there will be a "subsidary".... but that's calling a Cat a Dog because you claim the Cat has a fur coat just like the Dog.

The Subsidary will be a shell, the only reason to create it is because of the Preferreds... an attempt to bypass the $25/share redemption term.

All just my opinion.

Number13 wrote:

Seems like there is quite the debate regarding the preferred shares. To be clear, in order for the companies to MERGE, the preferred shareholders have to agree with a two thirds vote. 

However, if CVE wants to buy HSE and operate it as a SEPARATE entity (I.e. purchase all the common shares but not the prefs), that would not require the consent of the pref share holders. However, there would be less operational cost savings by operating two separate companies. 

I recommend interested parties to visit prefblog.com and look at the posting by Pref share expert James Hymas (Oct 27th) including posts in the comments section.

After reading the prospectus and his comments, I will be voting no to a share conversion.