Post by
Dogsbreakfast4U on Nov 09, 2018 11:05am
Market is telling me...
That HSE will get its hands on MEG with just a slight bump to its current offer. The news in the US about KSXL is a game changer. Line 3 is also facing court challenges and could easily face more delays. TMX will not be built under Turdeau. Differentials are here to stay and could even get worse. If WTI continues to go down Canadian oil could be worth ZERO just like AECO natural gas. In the end if MEG shareholders want to play hardball they wiil loose and HSE will win either way.
Comment by
autofocus111 on Nov 09, 2018 2:51pm
@Dogs But yeah MEG and others face a dire situation with KXL now at risk again. The latest KXL ruling is perfect timing for HSE to get its MEG deal done. HSE may not even have to bump the offer, but I suppose they'll do a token amount like SU did for COS to get MEG's BOD on board.
Comment by
Scottie99 on Nov 12, 2018 8:05pm
This post has been removed in accordance with Community Policy
Comment by
Dogsbreakfast4U on Nov 13, 2018 8:05am
With oil down for a 12th day in a row (an all time record), $11 is starting to to look pricy! As I previously said if oil prices continue to slide MEG will be in serious financial trouble soon. With oil prices in free fall HSE can no longer afford to raise the offer and may even decide to withdraw it, which at this stage would be good news. I would hate to be a MEG shareholder right now.
Comment by
mrbb on Nov 13, 2018 4:20pm
The drowning man parable....... Meg shareholders waiting for the white knight.......... https://truthbook.com/stories/funny-god/the-drowning-man
Comment by
oilandgasmick on Nov 14, 2018 5:27pm
My thoughts exactly-- the deal is starting to look a bit rich in the aftermath of the industry melt down. It might be possible to pull the deal and come back in at 7 or 8 bucks. I have a question though (because I am not too familiar with hostile takeovers). Can Husky just pull the deal at any time or do they have to leave it open until the Jan 19th deadline?
Comment by
Dogsbreakfast4U on Nov 14, 2018 6:21pm
I see no reason why Husky could not pull it's bid. Raising it now makes no sense for sure. I assume managements are now talking but now find themselves in a tough position. Husky doesn't want raise the bid with the price of oil suddenly up the air and MEG wants to save face after rejecting the offer with such vigour.
Comment by
oilandgasmick on Nov 14, 2018 6:44pm
What I am asking is: Husky said the bid was open until January 19th, 2019 (IIRC) but if tomorrow morning (speculative) they pulled the offer is that a legal move or are they bound by the original date they set for expiry?
Comment by
SQCConsulting on Nov 15, 2018 10:43am
I do not think they can just pull it. There would have to be some legal procedures to go through as it is a formally sanctioned offer. That said, I do not think that would amount to much legal wrangling. If they can up the asking, it stands to reason they could also decrease it to the point of it being meaningless.
Comment by
mrbb on Nov 15, 2018 4:01pm
IMO, I don't think there is legal ramification on withdrawing the bid before the self imposed, non binding, non contractual, expiry date. Only negative is bad faith on husky part and makes future negotiation with meg less credible and give meg more reason to not deal with husky
Comment by
justlooking4 on Nov 16, 2018 11:28am
Market is tekking me that the deal sucks. Down over 25 % since they announced it. See you at $ 15. What a terrible management group. SU would have been a much better investment. These guys just suck.