RJ Retraction Snippet

[Putncalls]

"Now that this ruling has come down, Exxon and InterOil will have a decision of their own

to make. As we think about the situation, we believe they have three options.

 First, they can try to appeal this latest ruling, presumably to the Supreme Court of

Canada. We do not pretend to be experts in the Canadian legal system, but our

understanding is that this would be a difficult route, since the top court accepts only

a small portion of the requested cases each year.

 Second, they can try to renegotiate the deal terms, accommodating the demands of

Phil Mulacek (in relation to Contingent Value Rights).

 Third, they can terminate the deal."

[jft310]

If Exxon drops out very very probability in that someone else should step in . Interoil many times had been cash poor and always found the money to keep going . Stock offerings , converts etc etc .
How big is this pressure driven asset vs the nonsense of a water drive ??!

[AU74]

More evidence of RJ analyst being clueless. First in thinking a single judge would be hearing an appeal, earlier today not realizing that the appeal had already been heard and decided. In most industries, such a basic lack of understanding about your work would get you fired.

[jft310]

Pavel covers to many stocks and thus does a poor job on most

[AU74]

Pavel covers to many stocks and thus does a poor job on most

Fair enough, but today's gaffe was horrendous.

[sageo]

More evidence of RJ analyst being clueless. First in thinking a single judge would be hearing an appeal, earlier today not realizing that the appeal had already been heard and decided. In most industries, such a basic lack of understanding about your work would get you fired.

 Thanks,AU74 . A good friend of mine (with several years with ML ) once said that half of the RJ people should be fired for " lack of understanding about their work " . Maybe we could throw some of the MS people in there also ! Humm .

[Kaliboo]

"Now that this ruling has come down, Exxon and InterOil will have a decision of their own

to make. As we think about the situation, we believe they have three options.

 First, they can try to appeal this latest ruling, presumably to the Supreme Court of

Canada. We do not pretend to be experts in the Canadian legal system, but our

understanding is that this would be a difficult route, since the top court accepts only

a small portion of the requested cases each year.

 Second, they can try to renegotiate the deal terms, accommodating the demands of

Phil Mulacek (in relation to Contingent Value Rights).

 Third, they can terminate the deal."

Not a lawyer either and not a Canadian, but I can't see them appealing this deal.  I think the first court wanted to kill it but didn't feel empowered to do so given the parameters of the case, and was merely using the appeal process to do what they alone didn't feel was within bounds.  Clearly both courts see that shareholders, and Mulacek, have been ripped off, and so they shut it down.

I think it would be foolhardy for either IOC or XOM to push this further in court.  XOM needs to address PM's and the courts issues.  Then XOM needs to amend its offer (or terminate the deal).  Then IOC needs to get another company (maybe this time hire 3 companies) to evaluate the offer and determine if it is "fair".  Apparently Morgan Stanley does NOT have the competence for this kind of work, i.e., oil and gas valuation.   Or something worse was in play.

XOM could nip this in the bud really quick.  Simply make an all stock offer of 1 XOM share for 1 IOC share and be done with it.  Works for me.

[Putncalls]

With respect to #3: Isn't the deal terminated at this point?