re: wpl and hdr: looney from hardmano LooneySomeone else could...

re: wpl and hdr: looney from hardmano Looney

Someone else could buy up HDR and make a move at any time. WPL has agrred for the last 2 years not to move to greater than 20% (and takeover offer) unless someone else makes a move.

WPL's stake is 11% which is however essentially a blocking stake - another party would need to obain 90% before compulsory aquisition of the remaining 10% and WPL could block this move.

I don't think HDR price is being capped by some party interested in HDR. Look at the chart - its moving up as it has the last 2 years in advance of announcements then drilling in Mauritania. It moves forward on news then generally pulls back to the moving average until another news item/rumour. It is possible though that the sellers sitting at 60 and 61 may include Macquarie whose HDR warrants expire 29 May - they have an interest in seeing HDR below 65 until then. Once that's out of the way and the announcements start flowing in June you will see the price rise significantly IMHO.

Cheers

H