Mergers and acquisitions

Interesting little piece in the Weekend AFR (Lively second half tipped for oil and gas M&A -
http://www.copyright link/business/energy/gas)

Could Horizon Oil be the subject of such action – personally I have no idea. But the article gave me cause to reflect for a moment on the failed attempt to merge with ROC last year. History now shows that ROC ended up receiving and accepting a superior and more attractive offer (and it is for that reason that I consider the planned merger between ROC/HZN to be a failure). So just musing here, could there be a merger or acquisition of HZN in the “second half” by another entity and if so would the result be any worse off for existing HZN shareholders? In my view I doubt it, just look at the plunge in share price to 11c and its inability to break through 14c resistance level (mind you 11c imo represents good buying value but that’s not the point).

We know IMC has increased their stake in the company (28%, 12/3). We’re now in April, and the 4th and final quarter, so if nothing changes for the positive soon then the eofy report from HZN will be very bleak reading for shareholders. Don’t get me wrong here, from a corporate perspective I’m sure the board will write it positively, you know, how they’ve reviewed and cut operating costs, how effective their hedging strategy has been in light of the global down turn in POO,how they’ve commenced production at Maari, etc etc… my point of view has and always is about the material and real returns to shareholders. A plummet in share price from high 30s low 40s down to 11c and failure to deliver a dividend (documented in an annual report a few years back from memory) just doesn’t cut mustard with me.

GLTA, M1