Frontera Energy Corp T.FEC

Who is the most famous Corporate Raider

[kcac1]

JMO-But I think de Alba wants to be a modern day Corporate raider like Ichan was 3 to 4 decades back. He clearly has set up the company for asset stripping. I hope he wants to use FEC as a model to illustrate to his Billionaire partners how they could take over much larger distressed companies and asset strip making far more $, much faster than rebuilding a troubled company.

In fact, it would benefit de Alba to keep the share price low by doing nothing, not even the customary Corporate website presentation, to promote Frontera while having almost a complete news blackout. Thus, if he is able to sell all 4 major pieces of the company for 4 or 5 times current share price, he looks like the next Carl Icahn. 

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The most famous corporate raider known for breaking up companies and selling their parts is Carl Icahn. He developed a reputation as a ruthless corporate raider after his hostile takeover of Trans World Airlines (TWA) in 1985. The result of that takeover was Icahn systematically selling TWA’s assets to repay the debt he used to purchase the company, a process described as "asset stripping"¹.

 

[Frank007]

I hope you are right Kcac ....but I,m not sure that taking it private to get rid of all the small fish is not more in the cards ...since no one seems to want the shares at this price even if they have triple the value ...

[oilinvestor2022]

They are buying back shares so I am not sure I agree with that theory.  (BMO is the broker buying back shares)They have held this investment for a long period of time.  This is unusual for hedge funds so my guess is a mix of sale in parts and potentially shares in a newco representing something that may not have significant interest at this time. the pipelines and refinery/plant assets

[kcac1]

I agree that Puerto Bahia may be the crown jewel of the Frontera assets. There is no other modern deep water port that can accomodate 2 Super Ships at the same time and soon to be connected to a refinery for sale in the world. China is currently financing building a large container ship port in Peru for $3B+ US. There are no current plans for it to also be able handle crude or liquids, let alone

[Kelvin]

Yeah kcac1 I read that share buybacks only succeed in raising sp if investors think that the growth in future revenues justifies the cost of buying back and retiring those shares. At least my financial accounting 101 text book says so. There's a sidebar blurb from Warren Buffet who warns that the money to buy back shares comes from the bottom line or net income which reduces the net income

[Kelvin]

Well kcac, it looks like de Alba has a tough sell. The following says that Colombia's hydrocarbon industry is in "terminal decline". Less than a decade of decreasing production for both oil & gas: https://oilprice.com/Energy/Crude-Oil/Colombias-Oil-Industry-Stuck-in-Death-Spiral.html