Woodside Petroleum Offers $8.1 Billion for Oil Search

[johnwgrant]

http://www.bloomberg.com/news/articles/2...oil-search

WOW - it wasn't just smoke and rumors !!!

[Optionray]

http://www.bloomberg.com/news/articles/2...oil-search

WOW - it wasn't just smoke and rumors !!!

Scary the bid is so low!

[johnwgrant]

http://www.bloomberg.com/news/articles/2...oil-search

WOW - it wasn't just smoke and rumors !!!

Scary the bid is so low!

Maybe the bidding is just getting going ....

http://www.fool.com.au/2015/09/08/woodsi...lnk3030003

"Oil Search then added shareholders are entitled to an offer that adequately reflects this potential value and I expect Woodside will have a tough task persuading the Oil Search board and shareholders to accept the offer.

More likely is that Woodside will be forced to come back with an improved offer perhaps including a cash component."

[jft310]

Woodside if successful makes a much stronger partner financially for Total and Interoil . Understand Oil Search has 9T's in P-1 gas to backup PNGLNG. How much do you think Interoil will certify and later eventually prove out in PRL-15 . .? Bet it's more than Oil Search's 9 T's. !My opinion . Our market cap is US$ 1.5 Billionish and with production of 9 of our T's that's worth at least 8 Billion . Not all bad on the bottom of the oil and LNG cycle .

[Stavros]

OSH Share Price this morning is A$ 7.60 up A$ 0.87. It's still rising a bit.
That is equivalent to US$ 5.29 Per Share.
52 week high is A$ 9.63

Woodside Share Price is A$ 29.63. That's 3.90 times the OSH Share Price.

IT LOOKS TO ME THAT THIS DEAL HAS NO CHANCE TO HAPPEN AT THIS OFFER

http://www.oilsearch.com/Media/docs/1509...20a9-0.pdf

Non-binding Indicative Proposal from Woodside

Oil Search Limited (ASX Code: OSH) advises that it has received a non-binding indicative proposal from Woodside (ASX Code: WPL) under which Woodside would acquire all of the shares in Oil Search for a consideration of one Woodside share for every four Oil Search shares held (the "Proposal"). The Proposal is expressed to be subject to the following conditions:

• Completion by Woodside of satisfactory due diligence on Oil Search;
• Execution of a mutually acceptable confidentiality agreement;
• Oil Search granting an agreed period of exclusivity;
• Oil Search obtaining support from key stakeholders and shareholders; and
• Woodside being satisfied that the transaction is likely to be supported by the PNG Government on acceptable terms.

The Proposal would also be conditional on the parties entering into a binding Implementation Agreement.

If the above conditions are satisfied and the Proposal does proceed, the transaction would itself be subject to further conditions precedent, including Oil Search shareholder, Court and Papua New Guinea regulatory approvals.

Oil Search Board intends to review the Proposal and will update shareholders and the market in due course. The Company wishes to emphasise that there is no guarantee that a binding proposal can be agreed between the parties.

While Oil Search will consider the Proposal, it should be noted that Oil Search has a material equity position in the world class PNG LNG Project and attractive, low cost, LNG development opportunities, including the PNG LNG Train 3 expansion and the Papua LNG Project.

This, combined with the Company’s low operating cost producing assets, reserves upside, significant discovered resources and extensive and high quality exploration acreage position provide substantive scope for capital growth and position the Company to capitalise from a recovery in the oil price. Clearly, Oil Search shareholders are entitled to an offer which adequately reflects this value potential.

Oil Search has appointed Morgan Stanley as its financial adviser and Allens as its legal adviser.

[Palm]

Ridiculous bid by Woodside. It will take more than 2x of what they've offered to even get a look. PNG govt won't allow as this would give them a huge loss; they bought in at A$8.25 or so per share.

Be interesting to see if it goes anywhere.

[Putncalls]

The Motley Fool noticed.
http://www.fool.com.au/2015/09/08/woodsi...lnk3030003

[Palm]

And now we will see how much preemption plays into this from parties involved in both PNG LNG and Papua LNG. OSH will get its chance to do any negotiating with Woodside and if they eventually decide to accept an offer, it will be subject to preemptive rights of some very interesting companies. Including some Japanese and Chinese entities.

[Thylacine-2]

Is that the way preemptive rights work? I thought the preemptive rights thing applied to sales of assets, not to sales of companies.

[Putncalls]

I'm really confused here. Why wouldn't Woodside just buy IOC?