RE:Maybe cpg is going to bid on the pipestone propertyThree so called problems or "issues" i would have with that possbility......
First, as much as i would LUV for that to happen, i highly doubt THAT was the reason Crescent Point sold the ND assets and ANY offer wou;d have to be in the HOSTILE category, something which is almost unheard of in the Canadian oil patch and usually NOT the norm. ANY M&A deals between two Canadian entities, are usually a mutually agreed transaction AND are usually 99% of the time, totally uncontested by a third party AFTER bids are submitted & made public....
Secondly, how badly would it look or would the optics be and how would the s/h perceive this situation IF CPG's mgmt would sell VERY profitable ALL premium crude assets/production for Pipe's low margin, currently unprofitable and mostly NG assets? In addition, ANY offer would have to be in excess of the $600M that was raised with the ND sale......probably double that amount for ANY offer to be viable/successfull. How would they justify this to the investing public, institional investors and above all their s/h as to it being a "good" move or transition? I'm an actual s/h of Pipe and even I can't justify THAT move........
Lastly & most importantly, the unseen & not mentioned benefits of this deal for the major holders. Many times during these M&A deals, many folks don't realize the implications of WHY certain deal are done in such a way and only look at the superficial, like what the equity retial holders get. Most folks don't look at what's being done in the bolieroom or in backrooms, behind the scenes deal making. The Starth-Pipe deal, was structured in such a way to be beneficial to the the two major holders, Riverstone & GMT AND.....maybe.... Pipe mgmt, with either some addtional or FUTURE incentives.....APART from the actual deal. So any third party intervention through a so called "hostile" attempt would have to deal all three parties to make their case to get them onboard BEFORE anything could be announced. Otherwise it is assured to fail.........
Like i mentioned at the beginning i would LUV NOTHING better than for that to become a reality BUT we have to be realistic here and cannot dismiss the HARD facts of the situation for BOTH parties....And if by some miracle something did materialize on that front, for something .....let's say around $3 in exchange for cpg paper........i would be the first in line to tender my shares on the open market 8).....if that gives you any comfort or solice......
GLTA