Josh Young
Hedge fund manager, energy, value, special situations

Baytex Bids To Buy Out Aurora Oil: Investment Implications

On February 6th, Baytex (NYSE:BTE) offered to buy out Aurora Oil (OTCPK:AAGLF) for total consideration of $2.6 billion (NYSEARCA:CAD), or $3.67 per share net of debt (NYSEARCA:USD). Aurora traded up from $2.30 per share to $3.70 per share, perhaps in anticipation of a potentially higher bid.

Baytex shared some of the metrics it is paying for Aurora in a press release, perhaps providing some indication of the logic for the buyout. This could help in assessing potential higher bids by other companies for Aurora. It could also help assess the acquisition criteria of acquisitive companies like Baytex. And perhaps it allows for read-through to other potentially undervalued small cap oil and...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details