$$$agl offers $1.35billion for oilsearch$$$, page-10

Grant

Good points although I would add:

1) OSH has been moving up despite the growing reality that the pipeline is unlikely to proceed anytime soon.

2) This says to me that OSH may be rerated upwards if the pipeline is canned. Why? Because the "enormous capital raising" that you mention would not be required, and also because an alternative development may then happen (liquid stripping plant with Japanese involvement) and it would have a lower capital outlay and a shorter lead time before revenue begins.

3) If the pipeline does get up (via Comalco) then remember that OSH intends to sell its gold assets and this would help with debt financing.

4) A takeover premium to "fair value" is to be expected.

IMHO something is brewing and whatever it is it is likely to move OSH upwards beacuse of 1-4 above, into the range of 90-110 cents.

Counter comments welcome of course.

Cheers

H