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

article on hse still possible takeover

[synnettt]

Under HSE in yahou I found this link: Lex live: Chinese oil Lex live: Chinese oil Friday December 10, 8:25 am ET Now IBM is in Chinese hands, will others follow suit with similar cross-border deals? One sector that seems to fit the bill is oil and gas. China's big three oil majors have a mandate from Beijing to go forth and spend, and they have the cash too. The three - CNOOC, PetroChina and Sinopec - have a combined market capitalisation of around $150bn and command valuations on a par with global second-tier integrated oil companies. Their financial firepower would be stronger still in the event of a currency revaluation. Potential targets include Royal Dutch/Shell's 34 per cent stake in Australia's Woodside Petroleum and Hutchison Whampoa's stake in Canada's Husky Oil. Price tags, at market value, range from $3.5bn to $4.2bn. That is manageable. For example, its modest gearing means PetroChina could comfortably borrow $12bn. Yet two factors argue against a Chinese oil swoop overseas. First, the Chinese trio have shown some restraint in overseas acquisitions. CNOOC has paid a lot less for projects it has been involved in relative to Woodside's valuation. It has also stuck to investing in assets and projects rather than operating companies. Second, the indications are that China will decant state assets into PetroChina. These could command a price of up to $5bn, but it is still unclear whether its most productive assets will be included. As their cash balances and low gearing suggest, China's oil majors have struggled to invest in enough projects. But they would struggle more to trump returns on existing operations. If oil companies refuse to copy Lenovo by dashing overseas, investors should be relieved.