From Business Spectator (almost word for word same article in the AFR). The AFR mentions Shell as the only likely counter bidder (fingers crossed).
Mosaic Oil, AGL Energy
Takeover target Mosaic Oil has given its blessings to the $123 million takeover offer from energy retailer AGL Energy. AGL, which has been looking to beef up its gas reserves, has given Mosaic shareholders the option of 15 cents a share in cash or a scrip deal of 1.01 shares for every 100 Mosaic shares. Mosaics board says the offer is fair dinkum and reflects the full and fair value of its oil and gas portfolio, however, there are rumblings among shareholders that the board could have pushed harder. Mosaic shares were in a dire state before the approach was made, around 7.8 cents, so a 15 cents a share bid is hard to refuse, but there is some suggestion that Mosaics lack of disclosure about its discussions with AGL in early 2010 and information on the economics and feasibility of the underground gas storage (UGS) project had led to the decline in Mosaics share price. The UGS facility at the Silver Springs-Renlim gasfields is of principal interest to AGL, but so far very little information is available to ascertain a full and fair value for the project. Mosaic can still entertain counterbids until August 4 and shareholders can hope that a rival suitor may be willing to see a higher value on the storage facility
MOS Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
