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The board has no chose if the iii decide to sell out,its out of their hands
Are they, Aye? I think the board have made it perfectly clear that this is not being sold off on the cheap. 20% higher than 152p is 182.4p, barely above our SP a short time ago. Jog on...
meant to say 20% higher
Unfortunately looks like it's going to go for a bargain. Some of the instis have suggested that a revised bid around 20% would be enough
This is a £5+ share when they are pushing towards 35,000 BOPD 2020 onwards! Why would anyone accept anything beginning with a 1? Equinor also have a number of shared assets and are also cash rich! They have been buying assets across the NS recently! They are cash rich and can offer a decent premium! The only problem is that DNO own 28% so any other suitor will have to appease the remaining shareholders to force DNO to accept a potential deal! This is just starting to get interesting! Lots of buys still going through ! I would buy More myself if I wasn’t overweight here!
Within the last few minutes Russia said it is willing to cut its supply of oil,oil seems to be firming up which will help our cause.
I’m fairly sure there will be interest from the likes of Ineos or Neptune who have been acquiring North Sea assets recently and have plenty of cash availability. Faroe’s advisors will no doubt be busy preparing the defence docs and looking to start an auction I would assume. Most City oil analysts don’t see the initial DNO bid as a knock out bid.
However these are turbulent markets and oil price volatility is high and cash is the main commodity today!
GLA
I cant see 2.50p I wish I could,more like 1.90p unless a white knight appears,ay thoughts on that?
I agree ! But that’s not necessarily a bad thing as long as it’s at the right price 250p+ I wonder how long they will take before coming up with an improved offer !
Sadly I think Faroe will go the way of most of the other British E&P companies and disappear into a larger oil co.
Hopefully another border or three will emerge...
@Maverick7
I don't think so. Institutions report daily their positions during a takeover.
So all these notifications today, are they institutions selling out? Mad if they are, 35,000 boed is the near to mid term projection for production!!!
So all these notifications today, are they institutions selling out? Mad if they are, 35,000 boed is the near to mid term projection for production!!!
That response is excellent - couldn't have put it better myself (if I could have, it wouldn't say much for our management team!). Clearly they are looking for a far higher price if there is to be a takeover. Will be interesting to see what DNO's next move is. I'd quite like a bidding war...
Tempted to sell some of my under-performers and buy more here, but might hold of in case DNO throw in the towel in which case would buy on the inevitable dip. However the fact that a bid has come in should underpin the SP fairly effectively as it indicates there is interest.
Rungne. Note that the "new" partnership for the PL825 drill consists of: Faroe (40% and operator), Equinor Energy AS (30%*), Spirit Energy Norge AS (20%*) and DNO Norge AS (10%*).
10% drilling partner... Wooden horse... Troy? Anyone? Anyone?
-- BB --
Albi Nothing stops them from buying more shares but they have to follow take over rules and declare when they buy more! Anyone buying on their behalf also needs to declare !
VERY ROBUST DEFENCE ! Based on the metrics they’ve used for reserves and resources it looks like they are looking for £3/share and above ! I can’t see DNO being that generous but at £2 it might tempt some instituutional investors who bought last year at 65-70p (3 bagger)
Robust defence which leaves the two parties miles apart.
Certainly nothing to stop anyone else buying in though, if they interpret the current SP as being an indication that there will end up being a higher bid - which seems to be the case, as why would anyone buy at 158 if they were only going to get 152 for their shares if the offer accepted? Buying at 158 implies you are expecting a significantly higher offer. I think Faroe know that fine...
Not sure if making an offer precludes them from buying any more, but there is a regulation about having to make a takeover bid if you go over 30% I think, and they are fairly close to the threshold. I don't have the full regulations to hand.
Can DNO buy in the market at the current price even though their offer is 152p?
...and I see the board have already come out with a statement that does not suggest to me that this unsolicited and opportunistic offer will be recommended for acceptance. Quite likely that they will accept a significantly increased offer but may also decide to refuse to sell out. Fairly clear though that the SP is now underpinned fairly well at and above current levels.
The PoO is low at the moment but was recently at $86 and likely to move up after the OPEC meeting. Faroe SP currently depressed due to oil price dip and also recent duster - this derisory offer is opportunist and should be rejected out of hand. We were at nearly 180p recently and nothing has changed in reality. If the board recommend acceptance of this, they ought to be booted out, but i'm sure they will see this offer, and in particular the opportunistic timing, for what it is. It's a "go away of words to that effect" from me, and I'd bet that this will end up with a final bid of over 200p in a fairly short time.
Similar to Ithaca here! PI's sold down the river.
Take it & move on.
i think with the future of FPM looking quite rosy, I think that a wee increase to 175/200pps or indeed another offer from a bigger rival maybe tabled ... BUT ... reading the RNS saying that the company will retain all staff etc ... then maybe management will take it and run ...
-- BB --