01-24-2014, 01:49 AM
'cybersssss' pid='36496' datel Wrote:Tree, I think the low pps would not allow ioc to survive in it own. It may, but there is demand for large resources to be developed by companies like woodside and oilsearch. This will play out very soon, in my survey of the landscape, if it happens at all.
IOC is a $2.5 billion company slated to receive 25% of it's market cap (613$ mill) in cash this Qtr.
If PRL15 is as fruitful as GLJ, KR, GC and Hession believe then IOC is slated to receive >$3.5 Billion cash after recertification in 2014/15.
If this resource has a decent chance of being real, IOC does not survive.
If I were the walrus running TOT, and I am already commited to giving IOC 25% of it's market cap in cash, I would double the 613$ mill, add in market cap and go after IOC with an $80 offer.
If there is no collusion, the likes of XOM, Woodside, RDS, CVX would jump in and likely bids over $100 would be made.
If there is collusion, well, we lose all that upside built into the deal.