takeover price, page-69

"there's just no way this deal will go through, with general shareholders, but particularly PNG gov - even if at profit price for them. the gov want a proven, long-term player in there and continued relationships, not some other foreign company. oil search is the defacto png national oil company."

Agree the PNG Govt will want a profit on their 10% holding of OSH. While the SP is lower now than their purchase price a couple of years ago the strong USD has them not too far down on their investment. But the idea (also in the Eureka Report) that PNG cabinet value their relationship with OSH and wouldn't want a 'foreign' company like WPL moving on it, doesn't appear to be holding water from recent statements. PNG control events 'on the ground' (often quite ruthlessly) and appear to not be too fussed abut who they are dealing with. They are very focussed on getting the highest dollar as they should be with the large budget deficit they are facing. The current prospects of a deal will come down to money on the table and WPL commitments to develop assets and provide a future income stream.