Closure with Exxon on InterOil's terms

[Resourcearb]

Dr. Hession is playing the game brilliantly.  While ExxonMobil placed all of its cards on the table during its quarterly call by acknowledging the importance of closing with InterOil, Hession refused to reciprocate.  Today's report of InterOil allowing exclusivity to lapse further highlights the company's position of strength and indicates that there are other compelling bids on the table.  This is now the final inning, and it seems that with InterOil's reported move in not granting Exxon an extension of exclusivity, the company has explicitly confirmed that it is in a position of total strength and can move ahead with Shell if Exxon doesn't immediately meet its demands. This would be the strongest signal yet that a deal is imminent.

I confirmed with InterOil management this morning that negotiations with Exxon are still "ongoing", so any rumors to the contrary are completely invalid.

[Movieguy]

What did IOC management say regarding XOM exclusivity?

[Resourcearb]

What did IOC management say regarding XOM exclusivity?

They wouldn't comment on the exclusivity.  But I came away from the conversation feeling very good about their position and their conviction in deal closure.  I'm hopeful that they allowed exclusivity to expire. There have clearly been some very positive recent developments.  As I indicated in an earlier post, I have strong evidence that Shell has submitted an unsolicited bid.  InterOil's reported move of allowing exclusivity to expire will accelerate timing and lead to a great outcome for shareholders.

[Movieguy]

I have multiple sources that have said Shell made an unsolicited bid for resource, so I feel that is very true and has been for many days. My question is why now lose the "exclusivity" label? I hope it is for good reasons, Resource, as you say, but I do not share your unflinching confidence.

[ebster123]

What did IOC management say regarding XOM exclusivity?

They wouldn't comment on the exclusivity.  But I came away from the conversation feeling very good about their position and their conviction in deal closure.  I'm hopeful that they allowed exclusivity to expire. There have clearly been some very positive recent developments.  As I indicated in an earlier post, I have strong evidence that Shell has submitted an unsolicited bid.  InterOil's reported move of allowing exclusivity to expire will accelerate timing and lead to a great outcome for shareholders.

all sounds positive but if RDS submitted an unsolicited bid wouldn't that be material information that would have to be disclosed?

[cybersssss]

I agree. If there is an unsolicited bid why and how can it not be disclosed. I believe a NYSE company has 3 days to announce a material event such as that. I have no sources.

[Movieguy]

A bid for the asset or other type offer that has been ongoing for many months need not be disclosed. A "formal" bid for the entire company would have to be disclosed but an "informal" one would not have to be. I think we are talking here about a bid for E/A along the lines of Exxon's bid.