Aussie_Boy, great post. Exactly what I am thinking.
Some other analogies out there for 'takeover remnants" such as the farmins for 20-30% on VPE tenements and the 50% share with WCL.
What would be interesting but unlikely would be if Santos were to take ESG for the 'convenience' of a full takeover. There are also a few examples of this ocurring out there..somthing like a bigger fish scenario. The only problem with this concept is the timings. Decemeber is the all eyes on ESG month for a reserve upgrade, after which time it may be conceivable that the company is ready for a change of control after a value base has been created. So for ESG to go before this, they have to be valued significantly more for a future valuation without the reserves or pilots completed. For this reason I think it is unlikely this will occur.
Zarro, not sure what you mean by creeping 6% a year. My understanding of the FIRB rules is that foreign companies are limited to that contained in Foreign Acquisitions and Takeovers Regulations 1989.
Cheers,
SF
ESG Price at posting:
$1.08 Sentiment: ST Buy Disclosure: Held
