What would a buyout offer look like?

[Optionray]

1)  Does it have to go through the IOC board?

2)  Can it just be announced by the company wishing to buyout IOC?  Or does it have to be announced by IOC whenever there is an offer?

[Gator]

Usually in a buyout, the acquiring company would make an offer to the target company. The BoD of the target company would be obligated to review, vote, and announce the results of the proposed offer. If the BoD of the target company rejects the offer, the acquiring company could go “hostile” and announce a tender offer directly to the shareholders of the target company.

[Justin94360]

Ray, all bids have first to be passed by SHU and then if acceptable they will be passed onto IOC.

[Optionray]

Usually in a buyout, the acquiring company would make an offer to the target company. The BoD of the target company would be obligated to review, vote, and announce the results of the proposed offer. If the BoD of the target company rejects the offer, the acquiring company could go “hostile” and announce a tender offer directly to the shareholders of the target company.

Thanks for the reply, how is the tender offer usually presented to the shareholders?  Via news announcement or some other method?  TIA

[Optionray]

Ray, all bids have first to be passed by SHU and then if acceptable they will be passed onto IOC.

Good one!

[Gator]

A hostile offer is launched via a tender offer, which would be very well publicized. Because the insiders of InterOil hold such a large percentage of the stock, and the company has a “poison pill”. This is a very unlikely scenario.