AWE on the Move

[macduffy]

Yes, it was SXY.

But now they have withdrawn their bid - AWE wasn't interested.

http://www.asx.com.au/asxpdf/2013121...pcw5bb8z2k.pdf

[Toulouse - Luzern]

And, actually, it is the other way round, now!

SXY's M/Cap has grown to $880m and AWE's fallen to $620m!

Intraday today:

SXY at 71.5 is $817 m and AWE at 125.5 is $653m

AWE high was 131

[macduffy]

Yes, at least SXY's bid appears to have put AWE into play! Good assets being recognised at long last!

[tricha]

Yes, at least SXY's bid appears to have put AWE into play! Good assets being recognised at long last!

.

Still dirt cheap Mac Duffy, good things take time.

[The Big Ease]

Strange to see SXY dumped.
Is it because this is effectively an admission that it will require much more capital?
I thought it was pretty much self-sustaining already wrt oil generated funds to invest into shale.

Perhaps this AWE merger would have allowed them to really ramp up some acquisitions and Cooper development.
I do think it would have been a good idea.
The market just doesn't seem to rate the Perth Basin's growth potential, so using the cash from AWE's oil revenues to accelerate the Cooper --> +++value.
Sell off a few non-core assets.
Keep the Perth Basin plugging along.

With such close market caps it was always going to be a difficult one to get up.
Especially with the different growth profiles vs oil production.

[macduffy]

Still dirt cheap Mac Duffy, good things take time.

Yes, that seems to be AWE management's view, too. The terms of the merger would have handed SXY shareholders an overgenerous share of the merged entity, based as it was on a depressed AWE shareprice and an overbought (?) SXY SP. Perhaps AWE might look at things differently on another basis that left AWE shareholders with rather more than 47%.

[macduffy]

Macquaries agree. AWE is the "cheapest mid level energy stock" that they cover.

http://www.macquarie.com.au/dafiles/...MTA2Mjk5NTk5S0

[troyvdh]

Great posts guys.I am not a conspiracy theorist.But do I have a right to be somewhat cynical ...when a company (any company) exudes any sort of positive news like in this instance AWE...is it not the usual pattern for the SP to leap (as it did) then decline (like say AZS).

On reflection Im probably (despite being around a while) a victim/someone stupid enough to believe that insider information does not occur.

[airedale]

Is Senex likely to sharpen the pencil and come back with another offer.?

[tricha]

Is Senex likely to sharpen the pencil and come back with another offer.?

Not likely Airedale, but Santos might. Lets hope the share price moves up , before someone does.