07-22-2016, 04:19 AM
RJ: The Saga is Over
The saga is over (we think): InterOil Corp. (IOC/$48.95/Market Perform) to be acquired by Exxon (XOM/$93.93/Underperform),
as Oil Search won’t match Exxon’s bid. Alongside its 2Q16 results reported earlier today, Oil Search stated that it will not revise its
bid to acquire InterOil. Rather than escalate the bidding war with Exxon, Oil Search conceded defeat, essentially opening the door
for Exxon to move forward with acquiring InterOil. Recall, our InterOil brief from Monday had stated that “we are skeptical that Oil
Search will come back with a revised offer.” We also wrote that Total (TOTF.PA/€43.58/Outperform) is very unlikely to put in a bid.
Barring some sudden last-minute development, the path appears realistic for Exxon to close its acquisition of InterOil by the end of
3Q16, the same timetable as had been the original plan for the Oil Search deal.
The saga is over (we think): InterOil Corp. (IOC/$48.95/Market Perform) to be acquired by Exxon (XOM/$93.93/Underperform),
as Oil Search won’t match Exxon’s bid. Alongside its 2Q16 results reported earlier today, Oil Search stated that it will not revise its
bid to acquire InterOil. Rather than escalate the bidding war with Exxon, Oil Search conceded defeat, essentially opening the door
for Exxon to move forward with acquiring InterOil. Recall, our InterOil brief from Monday had stated that “we are skeptical that Oil
Search will come back with a revised offer.” We also wrote that Total (TOTF.PA/€43.58/Outperform) is very unlikely to put in a bid.
Barring some sudden last-minute development, the path appears realistic for Exxon to close its acquisition of InterOil by the end of
3Q16, the same timetable as had been the original plan for the Oil Search deal.