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Forest Oil falls after Sabine Oil's bridge loan pulled

  • Forest Oil (FST -17.6%) plunged late in today's regular trading after Sabine Oil & Gas pulled an $850M loan that was being raised to back its acquisition of the company, according to Bloomberg.
  • Proceeds of the unsecured debt were to repay FST borrowings in connection with the purchase, the report says.
  • Sabine Oil had agreed last month to buy FST in an all-stock deal, without providing a value.
Comments (5)
  • john hunkins
    , contributor
    Comments (31) | Send Message
     
    OK FOREST MANAGEMENT TEAM..... YOU GET A SECOND CHANCE..... LET'S GET IT DONE THIS TIME. Stay independent!
    16 Jun 2014, 06:39 PM Reply Like
  • iamafarmerntx
    , contributor
    Comments (13) | Send Message
     
    Does this mean the merger deal is off?
    16 Jun 2014, 07:52 PM Reply Like
  • rollingstone100
    , contributor
    Comments (61) | Send Message
     
    John Hunkins, do you really think they can do it? I don't-they don't have a balance sheet that will allow it and they can't even pick the best place to drill. Also, I sure didn't like the deal they had with Sabine-it was a no value deal because shareholders can't analyze it. I also have no confidence in their management team. It is a shame to see how far in the ground they have drove a fine old oil company. Shareholders need to revolt and take the company back! They don't deserve a second chance.
    16 Jun 2014, 09:23 PM Reply Like
  • john hunkins
    , contributor
    Comments (31) | Send Message
     
    It now sounds like the Sabine deal was never off but incorrectly reported by a press release from someone. Either way, no matter what, there is value in the assets and either Sabine or Forest need to focus on getting the best possible results.
    22 Jun 2014, 10:39 PM Reply Like
  • rollingstone100
    , contributor
    Comments (61) | Send Message
     
    I would love to see FST get a competing bid from someone else, but Sabine and Forest have structured the deal where it practically excludes anyone else from even trying to bid a more fair price for FST. We shareholders are in a pinch-we can vote for the current deal or watch Forest go back to $1.75. As for myself and my 14,000 shares, I likely will vote against it and take my income tax loss rather than take a bad deal.......
    23 Jun 2014, 11:42 AM Reply Like
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