Hang In ThereIt is a frienly cash and stock deal, valued at a 19% premium. But the value will now vary with the price of CHRD shares. It is interesting in that perhaps CHRD swooped in while Devon was thinking about it. As far as deals go it is not so hot: the premium is low and it is not all cash. Devon is a much larger company than CHRD and it it wants ERF it likely could top this bid. The ERF dividend will continue until closing (ratio adjusted with a final dividend). The deal looks fine from CHRD's perspective, with a larger, more diversified combined company with good synergies. We would hold here. This one may not be over. (5iResearch)
In addition, Eric Nuttall is back on Market Call on Friday. Pretty safe to assume that he will have some comments given that he has recently invested in Chord and made ERF a top pick. GLTA