Exxon dissenters Offer FEDEX delivery today

[jft310]

Got a call one peep received the Exxon offer today , unfortunately received 15 packages not all theirs . Or delivery problems from the law firm via FEDEX today ,

Be advised

[jft310]

I have not received my offer
It's said the offer is
$45 a share in cash
Sign away future litigation awards dollars
And tax with holding of 28 percent
Or I suggest peeps decline the offer .
Do the NAV thingie
Particate in the class action law suit

[AU74]

Ho ho ho.

[jft310]

John Christian Vancouver attorney stated we did not have to file an application with the courts unless you want to appear in court .
They do provide a W-9 so income tax can be avoided if accepting the offer.
Have until May 15th to respond . Or the value will be up to the courts . Exxon states they will contest the NAV , remember they are paying for the NAV determination . Section 193 is the law and it requires a NAV determination .
There are 263,000 shares in dissent .

[Northoil]

Ho ho ho.

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So much for the "chicken feed" theory of Exxon's benevolence.  This offer, knowing Exxon, is exactly what you could expect.

Actually, $45 cash is slightly better than $45 worth of Exxon stock that has since gone down.  Of course, it will rise and there will be nice dividends along the way, but if you were planning to sell immediately anyway, this is a microscopically better deal.  Tax-wise, there's no difference since even if you did take the deal originally, the transaction would have been a tax event anyway.  Withholding is not so good for cash flow, but will apply against taxes due to the transaction if needed or will be refunded if not.

Now for the fun part.  The dissent phase is, in my opinion, hopeless.  We have the market price and we've seen NAV estimates as low as $20-something/share . Exxon, by its offer, is saying "this is what it's worth and we think we can prove it".   Exxon is financially rigorous and disciplined to a fault.  They typically offer a 20-25% premium when buying a company, so I think they would feel they've done enough.  Please don't trot out the "chicken feed" argument again.  Still, there are savvy people who think this is worth a shot and don't mind waiting.  People who tried to rescind their dissent aren't really in the "savvy" column.  We'll see the answer in a couple of years.  

Law suits may have a better chance as you're really suing IOC behavior, not Exxon.  Still a very long shot.  And time consuming.  I don't have the animus against Hession/BOD that others may have.  The BOD decided the company needed to be sold, Team Hession was brought in to trim the product down (dump the refinery and staff), oversee 40+ companies kicking the tires, and consumate the sale.  He was incentivised accordingly. They took some shortcuts on the first vote, subsequently corrected, in spades, on the second.  I just think it's not a black-and-white case. And life is too short.

[Palm]

Agree 100% Northoil. I actually thought they would offer closer to $40 based on their valuation methodologies including what they calculated on a NAV basis. The Canadian law does NOT state that only NAV is to be used, but that it is to be part of a calculation.

And when you look at the industry NAV methodology it is quite different than what has been spouted here. If one takes the time to really read both the law and the NAV methodology it might change one's expectations. As you stated, Exxon has fought these types of battles many times and their final offer as approved by the vast majority of shareholders (I did not vote with the small balance of shares I held to support the ability to sue) included all necessary support for their offer. The Paradigm valuation will hold little weight IMO since Exxon came back with very supportable information and methodology. It will be very hard for a court to vary much from this.

I hate what has happened and where things ended up, but at some point pie-in-the-sky meets reality.

[Stavros]

I have not received my offer It's said the offer is $45 a share in cash Sign away future litigation awards dollars And tax with holding of 28 percent Or I suggest peeps decline the offer . Do the NAV thingie Particate in the class action law suit

What about the CR(a)P - - - why is it not included in the Offer??

[2126]

I have not received my offer It's said the offer is $45 a share in cash Sign away future litigation awards dollars And tax with holding of 28 percent Or I suggest peeps decline the offer . Do the NAV thingie Particate in the class action law suit

What about the CR(a)P - - - why is it not included in the Offer??

The CRP is included in the offer. The offer is $45 cash (instead of shares of XOM) and the same CRP as the original deal.

[Northoil]

What about the CR(a)P - - - why is it not included in the Offer??

[/quote] The CRP is included in the offer. The offer is $45 cash (instead of shares of XOM) and the same CRP as the original deal.

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2126 - The CRP rounds everything out.  It's now exactly the original offer, excluding the variability of Exxon stock.  So it's door number 1 or door number 1.  Would appreciate your assessment at this stage.

[2126]

What about the CR(a)P - - - why is it not included in the Offer??

The CRP is included in the offer. The offer is $45 cash (instead of shares of XOM) and the same CRP as the original deal.

______________________________________________________

2126 - The CRP rounds everything out.  It's now exactly the original offer, excluding the variability of Exxon stock.  So it's door number 1 or door number 1.  Would appreciate your assessment at this stage.

[/quote]

My assessment is that I guessed wrong on the dissent. I had assumed that Exxon would not include a CRP in the initial offer, but would include a cash value for the contingent resource. $45 cash is marginally better than $45 of XOM shares at this point, but only by under $1. With only 263,000 shares dissenting [Phil threw the dissenters under the IOC bus], Exxon his little to lose by playing hardball with the initial offer, and will fight very hard in the Yukon court against any NAV determination. Not looking that good for dissenters. I've not read through all of the accompanying material that came with the offer; when I do I'll add to this post.