01-26-2013, 05:08 AM
If a super-major wanted to acquire all of IOC and thought it could do a deal for 35% of Elk/Antelope at $1.50 or $2.00/mcf why wouldn't it? Its likely that the end deal will include some portion of upfront cash as well as the new partner carrying part (or all) of IOC's project costs going forward. If the upfront portion is $500m, wouldn't that be an effective investment to make so as to make sure you don't get into a bidding war with other oil co's since once half of IOC's elk/antelope holdings is committed to a partner the whole company becomes less attractive to another buyer?
The poison pill helps to prevent a hostile bidder from buying more than 20% of the stock but if holders of >50% of the stock ever decided they were open to an offer the poison pill would not be helpful.
I have been a holder of this for 6 years now and followed the company before that and I am eagerly looking forward to seeing where this partnering process turns out. There are certainly alot of moving pieces.
The poison pill helps to prevent a hostile bidder from buying more than 20% of the stock but if holders of >50% of the stock ever decided they were open to an offer the poison pill would not be helpful.
I have been a holder of this for 6 years now and followed the company before that and I am eagerly looking forward to seeing where this partnering process turns out. There are certainly alot of moving pieces.