Palliser Oil & Gas Corp. PSLRF

Termination Fee is invalid - will not stand up in court

[8675309Jenny]

The time has come to find a hostile bid, that gets rid of management and Maha, who have shown no interest in doing anything to date. We now have precident to win court that the 3m break fee is outrageous. The standard amount is 3% of the deal price - not 30%, which should help in our quest to defeat this deal and get a new bidder. Here is the supporting evidence for that - in writing in the press ......The termination fee of 345 million Canadian dollars is equal to roughly 3% of the deal's value, a standard amount. It would be triggered if Tim Hortons abandons the deal for a better offer, or if its board changed its recommendation to shareholders supporting

[roscoe74]

Thats good news. Is there another entity interested in PXL?  This is a rather tiny deal, probably beneath the notice of intermediate heavy oil players. From the last MD+A, it appears that much of PXL's existing infrastructure consists of rusty bits well past their due date, they are exposed to considerable decommissioning costs and they have done poorly in executing guidance. On the

[roscoe74]

Speaking of the courts, are the insiders enthusiastic about this deal because going to the knackers in bankruptcy will mean losing their options and 'performance awards' as well as any bonuses and severance for doing such a stellar job.

[Rawliekins]

I would be happy with management getting a bonus if they did the right thing and sold key assets rather than give away the company for a song.  This company needs a hostile takeover.