Eliminate the Poison Pill

[davidhmtk]

As a division of KOGAS (or similar ), IOC is worth above $600/share.   It is time for the BOD to address the huge discount associated with an undercapitalized development strategy and eliminate the poison pill, or have the IBs take offers on all of E/A.

[MRP]

It's been a while since I read the poison pill language but I do not believe IOC's poison pill precludes a takeover.

 

If my recollection is correct, the poison pill does not kick in if a qualifying offer is made to all shareholders (a buyout offer).  It only kicks in if a buyer tries to buy over a certain % ownership (20% ?) without making an offer to everyone.  This prevents (or dissuades) a potential suitor from buying enough to vote out the board and fire management but wouldn’t prevent a full takeover offer.

[bertl05]

I don't think you will see either of those events take place. IOC mgmt wants to build the company over time in the manner they desire. It may not be the best for shareholders in the short or medium term, but IF they execute over the next 3 years, they believe it will be cheapest , most probable outcome.

I agree with other posters that the time has come to move forward on EA. I have a feeling if nothing is forthcoming on the CC that a better entry point on shares will be acheived. I also agree that if the earlier plan is being revisited (I believe it is) that it will be poorly recieved by the market as the new Petro stated. A big name with deep pockets is needed here now.

My firm belief is that the "detractors" have a good idea of whats been proposed and explains the high short interest to some degree. There appears to be little fear of, or enthusiam for whatever is being proposed. Time will tell.

[jft310]

I don't think you will see either of those events take place. IOC mgmt wants to build the company over time in the manner they desire. It may not be the best for shareholders in the short or medium term, but IF they execute over the next 3 years, they believe it will be cheapest , most probable outcome. I agree with other posters that the time has come to move forward on EA. I have a feeling if nothing is forthcoming on the CC that a better entry point on shares will be acheived. I also agree that if the earlier plan is being revisited (I believe it is) that it will be poorly recieved by the market as the new Petro stated. A big name with deep pockets is needed here now. My firm belief is that the "detractors" have a good idea of whats been proposed and explains the high short interest to some degree. There appears to be little fear of, or enthusiam for whatever is being proposed. Time will tell.

Higher cash flows yields higher stock prices. Why anyone can't see that is strange. EWC offers the highest cash flows in the shortest time frame. Thats good for a shareholder.

A major will partner with IOC it just doesn't have to be now. Getting NEC approval and EWC to FID will more then take care of the stock price. A price to a major will be higher in the future then today.

The last time we had this level of short interst was when IOC was $25. 30 days later IOC was $35. They were confidant then also. A little history for ya.

[admin]

["I also agree that if the earlier plan is being revisited"]

I would be VERY surprised if that would happen, Bertl. Even if it did, reception by the market depends on how it's financed. EWC is proceeding with the modular and power plant in Indonesia, it's clear that they can manage that smaller project, and even finance it:
http://in.reuters.com/finance/stocks/EWC...le/2355677
http://in.reuters.com/finance/stocks/EWC...le/2360768

Of course, financing the near $1B proposed modular LNG in the Gulf is of a different order. But I'm quite confident we'll get a strategic partner and a sell-down of part of E/A.

[Getitrt2]

I basically agree with admin. I believe EWC will be involved with respect to power plants and associated projects perhaps, but probably not with LNG at this point. If they are involved with building an LNG plant, I think it will be in conjunction with a new sell down partner in E/A. I don't believe IOC has worked with those three investment banks for over a year to end up back where it started on E/A. Of course, the Triceratops discovery has been added with Pacific Rubiales since then, which is a very big positive not really recognized by the market yet.