takeover target, page-4

Have a look at Baseline Oil and Gas in the US - Third Point, an activist hedge fund run by Daniel Loeb, took advantage of the terms of their convertible notes to take control of the company. Baseline has a similar EV to Amadeus post Loeb's activist intervention, yet on my numbers AMU is over 50% cheaper than Baseline on almost every measure. There are 2 problems:

- it is too hard for someone to get a large stake in AMU to make it worthwhile shaking up the company
- AMU does not directly control its assets, with operations outsourced to operators. Hopefully the recent appointments are steps in the right direction to take greater control.

AMU is very undervalued, we just need to be very patient.

Just my opinion
Monty