Let's Be Clear on CAs and Buyout Bids

[Movieguy]

I have seen some posts on other threads about possible buyout bids coming after companies are released from their Confidentiality Agreements (CA).  I too used to believe that the CAs prevented buyout bids, but according to IOC management, they do not.  They simply prevent companies from taking such actions in the open market.

So the important thing to note, for good or bad, is that companies such as Shell, Total, etc., can make buyout bids now, or after the CAs expire, or after the selldown, or whenever.  There are no restrictions on when they can make such buyout bids.

As to whether IOC has to release the news of the bid publicly, because it is a material event, is another matter.  This depends on how the bid is worded.  I would think that all companies involved would understand the legal intricacies here and would know whether their bid would likely require public disclosure by IOC or not, and would word their bid accordingly.

I hope this helps in evaluating the situation.

[jft310]

How can one make a bid for IOC until the Exxon price is known!! No one knows the Exxon price being paid except a select few excluding us and TOT and OSH and Shell and others. Reality is there will be no further bids until the Exxon prices are known. When is that?? When the SPA is done with Exxon. Lots of rumors no facts. Watch the window between the SPA announcement and closing for more bids if they come .

[Movieguy]

"Watch the window between the SPA announcement and closing for more bids if they come."
Jft, I do not understand what this "window" is. Is not the SPA announcement and the closing the same thing? From all I have read here on SHU, this agreement is 1500 pages or so. Is that not a closing agreement, or is that just a preliminary document? Or are you referring to some other event that must happen for the deal to be closed?

[jft310]

What we know is Exxon has entered exclusive negotiations with Interoil. Thats not an announcement . The SPA terms need to be announced then approved by the PNG govt then the deal closes . Could it all happen at one time ?? Maybe??????Not likely.

[Getitrt2]

My understanding is that a detailed announcement will come with a final binding agreement with XOM, subject to and followed hopefully soon afterward by a final Gas Agreement and approval between the partners and the government, which would represent the final "closing" of all agreements.