'Putncalls' pid='62529' datel Wrote:I'm really confused here. Why wouldn't Woodside just buy IOC?
Break it down into short, medium and long term growth.
OSH: SHORT: already a producer , MEDIUM: PNGLNG can be expanded faster than a whole new LNG plant being built, LONG: equity into a new plant to be built.
IOC: SHORT: no production, Medium: no production facilities that can be expanded in a medium period of time, Long: equity into a new plant to be built.
Although in the longer term IOC may well be the better purchase at this time, but shareholders within WPL want to see a progression of growth in production and income rather than a jump some longer time frame in the future.
It is we (shareholders) that tend to be the problem for efficient management of many companies because we tend to have such a short term view of things in general.