RE:m & aGood evening JD, I have thought about this and for some companies it is a possibility especially in areas of mutual interest. Baytex also talked about possible neighboring acquisition if it made sense.
That said my expectation is the deal would be completed at a premium and there are so many undervalued small and mid cap that you could redirect the windfall to those. The only question would be if a company had upside property potential greater than the premium. Someone asked me the other day if Whitecap was a buyout target (I hold that also)...if it was I would gladly take a premium and spread the funds.
Another point is the deal would have to make sense for the buyer i.e. do they operate in the area/do they have a land position in the area etc. If they don't I think (in my opinion) shareholders prefer returns from the big guys versus taking that cash to "buy" production.
Certainly something to keep in mind. Back to WCP if they were bought out I have many others I could spread the money too. The joy of Canadian Oil and Gas are there are so many undervalued plays and the big guys can't buy them all (or so I think lol)
JohnnyDoe wrote: I've been reading lots of articles recently on m & a possibilities in the oil patch. Frankly this has me a bit nervous. I have two large caps. But I don't want any large caps swallowing up my mid caps over the next 18 months. You'll get a premium over say the last 30 trading days as is typical but that's undervaluing the shares.
I'm starting to lean heavily towards dividends as opposed to buybacks to have a more immediate impact on share price to ward off large cap suitors. Thoughts on that?