Woodside idea?

They could buy into FAR and the largest oil find from last year for half that amount.
All that money and no one knows what to do with it.
They could buy CNE & FAR with the war chest they have at their disposal.

Woodside should forget about Oil Search and use its war chest for a $US2.5 billion off-market buyback.
That's the view of Credit Suisse's oil and gas analysts, who reckon Woodside shareholders are confused about how the Oil Search bid fits in with the oil giant's stated strategy.
Credit Suisse said the numbers for an off-market buyback appear more compelling, with a $US2.5 billion deal at a 14 per cent discount to be 11 per cent to 15 per cent accretive to earnings per share.
"When one looks in isolation at what Woodside is asking Oil Search shareholders to do, its share price reaction to the offer, not to mention its franking credit balance, we are firmly of the view that its radar should turn back around to its own stock," the analysts told clients.
"Why use its own scrip to offer a 30-40 per cent premium for a stock its investors could get exposure to themselves if desired, when it could use that 2.5 per cent debt to buy itself back at a 14 per cent discount to a share price that is skirting around 10-year lows?"


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