Example of how a deal can be sweetened

[Stavros]

Here’s how some acquisitions quickly unfold when the first accepted offer is subsequently supplanted by a sweetened deal. This happened only a few months ago.

I'm seriously expecting this to also happen in our case.

Perhaps a Japanese company or group will step in???

Since O'Neill has been openly courting the Japanese for a long time, with repeated meetings with Japanese businessmen and the Prime Minister, he cannot say NO to a Japanese bid.

EXAMPLE OF A REVISED TAKEOVER

1. Aspentech announced that it was taking over KBC on 12 January 2016. The deal was unanimously approved by both Boards

“AspenTech Announces Intent to Acquire KBC” 12 January 2016

Proposed transaction combines leading software and consultancy to drive significant value creation for oil & gas industry

http://finance.yahoo.com/news/aspentech-...QRzZWMDc3I-

2. Yokagawa announced that it was taking over KBC on 17 February 2016

“Yokogawa Moves to Acquire KBC Advanced Technologies” 17 February 2016

Yokogawa’s bid of 210 pence per share is 14 percent higher, and upon the offer KBC’s board of directors unanimously withdrew their recommendation for the AspenTech offer and have instead issued their recommendation for the Yokogawa offer.

https://automation2.com/2016/02/17/yokog...hnologies/

3. Aspentech walked away and the deal was quickly consumated

“Announcement of Completion of Acquisition of KBC by Yokagawa” 8 April 2016

http://www.yokogawa.com/pr/news/2016/kbc...sition.pdf

[kommonsents]

That is a good illustration of one scenario of a swettened deal that worked out.

However, I noted that it did not result in a bidding war and the company making the original was unwilling to up their bid and simply walked away instead of offering more than the additional 14%.

Seems that Woodside also chose to walk from their OSH offer rather than sweeten the pot.

There is not always sweetness to be added to an original offer.  Not sayin' that is the case here.

So, we are in a high stakes poker game.  How will it play out?

[cybersssss]

Kommon,

I do not believe there is anything at all to fear by voting down this terrible deal for Interoil shareholders. In my view we are better off riding the recovery as Interoil shareholders then oil search shareholders.

You seem to think that we are in a position of weakness. Quite the opposite, we are in a position of strength. They want us, we don't want them.

Possibilities
1) they make a better and more acceptable offer before the vote when they realize the resistance out there.

2) we vote no and we fire our destructive CEO that has torn down this company and wasted capital to no avail. Ioc can ride out the total contract easily with barebones staff. There is no need for a big board. Basically a holding company. I rather do this then take a bad deal. Hession goes bye bye and doesn't get his cake and eat it too. He gets money and no board seat and no entrance into oil search if he doesn't deliver ioc to them on a plate. Like he is trying to do.

There are many ways this can play out. All good in my opinion as we know the most basic value now that oil search showed us.

3) another bidder comes in.

Anyway you look at it DONT BE AFRAID. There is absolutely no need to. We have a floor in our price now. Hession must be stopped and we must get what we are worth.

SHAREHOLDERS MUST UNITE

[kommonsents]

Kommon, I do not believe there is anything at all to fear by voting down this terrible deal for Interoil shareholders. In my view we are better off riding the recovery as Interoil shareholders then oil search shareholders. You seem to think that we are in a position of weakness. Quite the opposite, we are in a position of strength. They want us, we don't want them. Possibilities 1) they make a better and more acceptable offer before the vote when they realize the resistance out there. 2) we vote no and we fire our destructive CEO that has torn down this company and wasted capital to no avail. Ioc can ride out the total contract easily with barebones staff. There is no need for a big board. Basically a holding company. I rather do this then take a bad deal. Hession goes bye bye and doesn't get his cake and eat it too. He gets money and no board seat and no entrance into oil search if he doesn't deliver ioc to them on a plate. Like he is trying to do. There are many ways this can play out. All good in my opinion as we know the most basic value now that oil search showed us. 3) another bidder comes in. Anyway you look at it DONT BE AFRAID. There is absolutely no need to. We have a floor in our price now. Hession must be stopped and we must get what we are worth. SHAREHOLDERS MUST UNITE

You are putting words in my mouth, Cyber.  I am simply trying to clarify that just because we vote no and this deal gets voted down doesn't automatically mean they will sweeten the deal.  It is not an automatic.  OSH is not a wealthy company and has limited resources at this time.  There are risks with their offer.

Personally, there are way too many unknowns in their offer based upon what I think I know so far, and the price structure that I can see is not acceptable to me.  So with what I know now, I vote no.

I think IOC is worth far more than OSH is offering and we would be fools to accept their offer as it now stands.

The only good thing about the OSH offer is that tends to derisk IOC to the extent of the offer except the CVR is not yet clarified and so may be at risk.

IOC still bears risk going ahead, especially with The PSO as CEO and with the present BOD.

Which brings us to the PM situation which certainly bears careful consideration.

Perhaps what we need at this time is a reduced caretaker BOD and a new CEO, perhaps chosen from present ranks.  PM on that BOD may or may not be a good thing.  Depends on his present thinking and agenda and I do not yet have that information.  PM needs to clarify his ideas and agenda beyond what he has provided so far.

[ArtM72]

Certainly PM on IOC's board is no longer the deal breaker some here once claimed. He kept us out of the hands of Shell. Maybe it's not too late for him to engineer a similar recovery from OSH and Total.

My belief continues that OSH is facing a big certification payment and a coup like this was about the only way they had (or the easiest way) to get the money. The French may simply see this as business opportunity with a potentially legendary ROI.

[will2bgreat]

Certainly PM on IOC's board is no longer the deal breaker some here once claimed. He kept us out of the hands of Shell. Maybe it's not too late for him to engineer a similar recovery from OSH and Total. My belief continues that OSH is facing a big certification payment and a coup like this was about the only way they had (or the easiest way) to get the money. The French may simply see this as business opportunity with a potentially legendary ROI.

I agree Art.  My prediction is 10+Ts.  Otherwise, why is OSH rushing this deal rather than wait for the certification numbers.  IOC knows, Total knows, and both have said we have a 2 train LNG plant.  OSH is the only one who has not said 2 trains.  I wonder why; maybe they had this deal in progress?