"1505 [Dow Jones] Eastern Star (ESG.AU) may be next in line for a takeover bid in the coal seam gas sector after the Shell(RDSB.LN)-PetroChina (PET.YY) bid for Arrow Energy (AOE.AU), says Patersons senior private client adviser Chris Blair. "The logical, and in my view the most strategic, play is now ESG with Santos (STO.AU) and TRU Energy major shareholders. Obviously ESG's share price is up today, however it looks good on valuations and the long awaited sector consolidation is underway." Adds that the Arrow offer of A$4.45/share plus one unit in Arrow's International Business, is a good first bid, but still cheap. ESG up 11% at 80 cents. AOE up 47% at A$5.11.(DWR)"
ESG Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
