02-02-2013, 10:40 PM
In the Q4/2011 CC it was announced that part of the upfront cash payment will be used for a share buyback. As long as the buyback price per share is lower than the NAV price per share such action is beneficial to the shareholders because of the leverage effect on the NAV value per share. So, we must be grateful that shorters are lowering the instep-price for a share buyback. However, it remains to be seen if the deal will lead to an upfront cash payment big enough to do this and it can be even more attractive to use all the cash to invest in a LNG-plant. However, management is in the late fifties and they are more inclined to look at the shareprice on the short run. I do not expect a hostile take over. The poison pill is very effective.