brokers downgrades to start

I just thought I would re visit the Huntleys position of " hold "

Im not trying to downramp just because I am out now but I think we will see a lot of brokers saying sell now not hold ?

Below is part of Huntleys event analyisis saying other bidders would wait for the report to come out.

I posted this morning that the WPL bid in gulf of mexico wouldnt be raised because of the company not opening up its books.

Its hard to see someone gazumping Tullow now if they are going to try and convince there shalholders to pay more than $2.02 for a company valued at between $1.2 and $1.48.

We know Uganda is worth the premium but only Tullow have that inforamation available to them.

What good corporate governance exists for a public company to pay more on the basis of a nudge and a wink on Uganda.

Huntleys extract below


Barring the possibility of Tullow Oil withdrawing it’s A$2.02ps cash offer for HDR, the fundamentals take a back seat to the corporate maneuverings. The bid strengthened share price remains within our Hold zone. We feel the likelihood of a counter bid is somewhat reduced since our last report. The bid was already set at a substantial premium to the pre-offer price, HDR’s board is on side, an A$14.7m break fee is payable and the Flamant gas prospect proved dry. If other bidders are there, they may wait for the explanatory memorandum and independent expert’s report due in mid November before moving. Candidates include Woodside, British Gas, Dana Petroleum and any number of other international oil and gas companies yet to gain a foothold in Mauritania. Shareholders will vote on the merger scheme of arrangement in December.


Broker Consensus Estimates
Last Analyst Update: 14 November, 2006

Strong Buy

Moderate Buy

Hold 5

Moderate Sell 2

Strong Sell 1

ProspectFcst
0 1 2 3 4 5 6 7 8 9 10

Number of Analysts

Contributing Analysts:
- DEUTSCHE BANK SECURITIES
- CITIGROUP
- SOUTHERN CROSS EQUITIES LTD.
- ABN AMRO
- JPMORGAN
- CREDIT SUISSE - AUSTRALIA
- MACQUARIE RESEARCH EQUITIES
- UBS