Seeking Alpha

Longview Oil +10.2% on takeover offer but few details released

  • Longview Oil (LGVWF +10.2%) says it is reviewing an unsolicited, non-binding takeover offer from an unidentified public company.
  • Longview provides few details except that the prospective bidder would pay for the deal with its own shares.
  • The company adopts a shareholder rights plan as a defensive move to provide its board with time to evaluate the offer and alternatives.
Comments (1)
  • Nawar Alsaadi
    , contributor
    Comments (440) | Send Message
     
    I expect a deal to take place in the $6s range. (LNV traded as high as $6.75 in September). Longview's oil weighted slow declining conventional assets are very attractive for the likes of Whitecap Resources, Cardinal Energy, Surge Energy, Twin Butte Energy, Torc Energy ..etc, too many buyers to list.

     

    Advantage which held 45% of LNV's shares in the past refused to do a share deal (they wanted cash to develop their Glacier NG asset), now that AAV is out of the stock as of last week, the buyer stepped in. I currently own 3.4% of the outstanding shares and I would commit to a deal in the $6s if the buyer is credible. Longview is extremely undervalued and it is constrained for growth capital, a combination with a peer makes tremendous sense, and a share deal would still give shareholders the chance to capture any future upside.

     

    Regards,
    Nawar
    10 Feb 2014, 11:41 AM Reply Like
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