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

MEG offer

[justlooking4]

has killed the share price momentum. We were headred for $ 25 and now we are sub $ 20 and sinking. Typical HSE management to screw over minority shareholders. At least we have a dividend now, better than before. Still hate this stock.

[SQCConsulting]

Hard to argue against that, although not an unexpected slide. It sets us back 6 months - a year in momentum no question but it should get interesting after that. Recall that HSE was close to $35 if prior to the downturn and asset sale. The purchase puts us back on the growth track and increases the mc which is needed as much as the dividend for a stock to perform consistently. I do though share

[mrbb]

if hse shares lose more than 10% for making what other perceived low bid of $11, what other company would want to take an even a bigger cut in share price if they want to beat hse's 11$ bid?.

[SQCConsulting]

Indeed, I find it difficult to imagine that any sweetening of the offer would be as much as I originally thought assuming of course it is sweetened at all. Pretty slick timing I have to say whether it was intentional or not.

[oilandgasmick]

Thanks MRBB: Well, the results here were quite predictable. No way was the BOD going to recommend this deal as a consolation prize for a stock price that was once North of 35 bucks. There are several things that MEG fails to mention in its response: -Not much reference to the 3.3 B in debt that HSE would have to assume. -MEG reserves based on Jan 2018 pricing. What would reserves be today if

[Olympic]

Good points and great conclusion.  I say pull the offer and revisit in 2019 after MEG hedges expire and its financials are based on the true margins they can produce.  Furthermore - issue a special dividend with HSE's cash, push the SP higher, and when MEG is on its back legs make it an all equity offer.

[mrbb]

every time oil price drop or differential widen, husky's $11 bid got sweetened.

[Scottie99]

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[Scottie99]

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[mrbb]

many posters here have already said husky's $11 offer is good enough, no need to raise. Hse is up today so far, that is the reaction of the market.   You did say that husky's hostile takeover of meg is similar to SU-COS case, it's gonna be messy.  Now you say it's different. SU, IMO and big players staying quiet doesn't mean they might be pursuing meg. 

[Scottie99]

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