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+--- Thread: Did IOC mgmt. not understand a deal would take so long? (/showthread.php?tid=4350)
RE: Did IOC mgmt. not understand a deal would take so long? - sydbod - 08-10-2013
jft, I hope you are correct.
I have no loyalty to OSH, Santos, or IOC. All I want is the money, and I don't really care what path it takes, so long as the path is in my direction with the shares that I posses.
RE: Did IOC mgmt. not understand a deal would take so long? - Indoreservoir - 08-10-2013
From the fwiw dept, the last two deals I have been involved with
Deal 1: term sheet signed August xx, sales and purchase agreement signed December, closing January
Deal 2: term sheet signed dec Yy, spa signed June, closed August
Both of these deals were in se Asia and were asset sales. Neither required substantially new Joint venture operating agreements and were relatively straightforward deals.
The IOC deal is on the surface much more complex with multiple parties on xom side.
Further, knowing Phil my guess is ioc's outside counsel is Dewey Cheatem and Howe rather than Jones Day or another top tier M&A firm.
iOC excom M&A experience - actually getting a deal done from start to finish - probably very limited.
So, my guess is that no one hAd a clue how long this would take and they grossly underestimated the time.
All IMHO.
RE: Did IOC mgmt. not understand a deal would take so long? - ebster123 - 08-10-2013
'Indoreservoir' pid='26854' dateline='<a href="tel:1376071 Wrote:From the fwiw dept, the last two deals I have been involved with Deal 1: term sheet signed August xx, sales and purchase agreement signed December, closing January Deal 2: term sheet signed dec Yy, spa signed June, closed August Both of these deals were in se Asia and were asset sales. Neither required substantially new Joint venture operating agreements and were relatively straightforward deals. The IOC deal is on the surface much more complex with multiple parties on xom side. Further, knowing Phil my guess is ioc's outside counsel is Dewey Cheatem and Howe rather than Jones Day or another top tier M&A firm. iOC excom M&A experience - actually getting a deal done from start to finish - probably very limited. So, my guess is that no one hAd a clue how long this would take and they grossly underestimated the time. All IMHO.
so given this (and thanks for your perspective) how long would you think? TIA
RE: Did IOC mgmt. not understand a deal would take so long? - Indoreservoir - 08-10-2013
Ebster123:
Too many moving parts to estimate timing accurately IMHO, but given govt pressure and xom's desire to get it done, I'll swag it as October this year.
I would speculate the minority partners in xom lng - OSH in particular- are dragging it out to secure the best deal they can get. Could be way off base on this, however.
We'll see.
RE: Did IOC mgmt. not understand a deal would take so long? - admin - 08-10-2013
Welcome aboard Indoreservoir, good to see you here!
RE: Did IOC mgmt. not understand a deal would take so long? - efi426hemi - 08-10-2013
'sydbod' pid='26842' datel Wrote:....... try to screw IOC for as low a price for their gas as possible and use the delay tactic for as long as possible. 2) Delay the deal as long as possible so that PNG LNG money goes to IOC as late as possible as the PNG LNG partners don't have much free money left to play with.......
Thanx for the speculation Syd, however your speculation does not match reality. I happen to know that XOM and IOC legal teams have been working extremely long nights and are in direct and constant digital communication. The reality is that XOM is very eager to complete this deal as soon as possible.
<cite>Indoreservoir' pid='26854 Wrote:.....Deal 1: term sheet signed August xx, sales and purchase agreement signed December, closing January
Deal 2: term sheet signed dec Yy, spa signed June, closed August.....
Indoreservoir - thanx for bringing some real life experience to this situation hopefully adjusting reality for some those who do not fully grasp the complexity of the legal work.
RE: Did IOC mgmt. not understand a deal would take so long? - Palm - 08-10-2013
Thanks Hemi for your as always factual and informative posts. Agree with you and also appreceiate Indoreservoir comments. After the AGM on June 25th you had noted from the AGM that Wayne had been asked about O'Neill's "30-60 days" comment. Wayne stated that those were O'Neill's words and people should disregard them as far as setting any "deadline". Knowing what we know and given the new CEO being fully engaged in this process, I am comfortable waiting patiently for the deals to be consumated and announced. This can really come at any time and I think it will catch many offguard.
RE: Did IOC mgmt. not understand a deal would take so long? - Spartina - 08-10-2013
Hemi is right, lawyers working overtime bigtime. Exxon wants this done FAST.
RE: Did IOC mgmt. not understand a deal would take so long? - Dmarque - 08-10-2013
'Spartina' pid='26868' datel Wrote:Hemi is right, lawyers working overtime bigtime. Exxon wants this done FAST.
And it was more than 2 weeks ago that I was chastised for looking for a more specific definition of the word........ "CLOSE":
But we're real close......right?
What....ever~!!!
RE: Did IOC mgmt. not understand a deal would take so long? - CAC - 08-10-2013
Too many moving parts to estimate timing accurately IMHO, but given govt pressure and xom's desire to get it done, I'll swag it as October this year. I would speculate the minority partners in xom lng - OSH in particular- are dragging it out to secure the best deal they can get. Could be way off base on this, however. We'll see.
++++++++++
That may be accurate, but again, if some of our expectations regarding timing are too ambitious, I would still suggest that IOC helped make them so. When a company intentionally (and unnecssarily) states that they have an agreement on almost all of the key components of a deal...it helps create an expectation that the deal will be finalized soon". They didn't have to say that. They could have said "we're entering into exclusive negotiations with XOM"...and left it at that.