Ann: 09.10.16 CTP to Commence Proceedings Red Sky, page-38

re: Ann: 09.10.16 CTP to Commence Proceedings... Pezza87 wrote:
"Why would BG try to slow down CTP if its resources were worth billions of dollars?

Surely they'd buy out the minnow, just seems like a whole heap of nonense.

This management is pretty average IMO, do something!"

BG want to slow down CTP, IMO, because it suits them to do so. Drilling requires they invest. At the moment, they might not be ready to invest (or to invest for as many wells as CTP wants), because they have their cash tied up in other investments. Or because they have their hands full with other things. Or because they want the CTP SP to wither, so that should something happen they can attempt a takeover at a lower price.

CTP is not that easy just to buy out. At the last AGM CTP adopted some constitutional changes to reduce any chance of a proportional takeover. Neither BG, QGC nor PXA are in the top 20 share holders. It would take a lot of effort for them to get to the position of launching a take over, and I think we would see it happening from a long way off (they would have to enter the top 20 first). And not that big a percentage of CTP shares are being traded at the moment, most are being held.

- Karl