IMHO, I think that the offer from AOE, although it is $1.01 less per share than what BG offers, is better and more promising.
Don't laugh but I think it is.
1) The BG offer is a once off payment. Once you sold your shares, you are finished and will never benefit from any upside that may eventuate down the track. All teh profits will go to BG. End of story.
2) On the contrary, AOE's offer give the shareholders approx.$2.70 in cash, plus 1.21 Arrow shares for every PES share you hold. Thus, while you are holding AOE's shares, you will still be benefiting from any upside that will eventuate down the road. And believe me, there will be many of them (future benefits), with the LNG plant etc., and the possibility of a future takeover from Shell, which IMHO would not surprise me at all.
Can you do your sums then. You will get 1.21 shares in AOE for every share you own in PES. If lets say Shell will do a takeover of AOE at $4 or $5 per share, which is quite on the card, you could end up getting $6.05 for every PES share plus the $2.70 up front, giving you a total of $8.75.
My thoughts and please DYOR.
I wish I didn't listent to my friend the Financial Advisor and didn't sell my PES shares when he told me to sell when I was miles and miles ahead in profit. Lucky that I kept the last 15,000 of them and sold them for $5.36. Now this from left field...........
Buddy
AOE Price at posting:
$2.48 Sentiment: LT Buy Disclosure: Held
