RE:RE:Acquisition Target Lumpy, sometimes when someone looks to take over another company, it is not an issue of being able to outperform management, but purely a nuts and bolts game. What does the company have, what is the potential of the assets in the ground, and what will it cost to get those assets?
That is it in a nutshell. With CU at $3, TKO was worth about 5B NPV. Market cap is ? It is simple math.
With Gibraltar, TKO is not a takeover target, and the ability to "outperform" existing management in that scenario is legitimate argument, but with Florence, and Yellowhead, and the potential to unlock NP, those are the assets that a takeover would be more than tempting.
KW
lumpy13 wrote: Really comes down to the perception by potential acquirers of the upside potential, combined with the belief they can outperform current mgmt and realize greater profits.
TKO is relatively cheap. Their mgmt appears to underperform. Then it comes down to upside potential of their properties.