Well over the short term, you are right. However if you are a longer term business operator and you get the chance to buy a company at a 60% discount over its long term value with all the synergies gained in knocking out a competitor and cost savings in merging divisions; plus the ownership of some fantatstic new assets that could never be developed at such a cheap cost, then you may reconsider your view here.
In other words, developing those oilfields from scratch would say cost $8B (just picking a figure out of the air). But if I can buy existing fields from a competitor at a current discounted price on the market at $4B, and at the same time, knock out a competitor, I know which way I would go!
OSH Price at posting:
$3.84 Sentiment: Buy Disclosure: Held
