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Encana (ECA +1%) may be a takeover target after the departure of its CEO, Bloomberg speculates,...

Encana (ECA +1%) may be a takeover target after the departure of its CEO, Bloomberg speculates, after a bet on natural gas wiped out more than a third of the Canadian explorer’s value. Even as gas prices remain depressed, ECA’s gas-rich formations in Canada and the U.S. may appeal to companies looking to export the fuel to Asia.
Comments (6)
  • Encana & Suncor will be off limits to foreign takeovers and no other Canadian company could do the deal.
    Speculate elsewhere.
    29 Jan 2013, 10:59 AM Reply Like
  • Off limits to Chinese companies but not off limits to big American or other Multi nationals since half of the assets are in the USA - Exon, Chevron, Shell - they could all be acceptable purchasers.
    29 Jan 2013, 11:21 AM Reply Like
  • Without commenting on the takeover rumor, hasn't the Canadian government approved joint ventures, even with the Chinese. The prices on these seemed to indicate that ECA as a whole is undervalued.

     

    What if a Canadian company partnered with a major E & P company from a friendly company to buy ECA? (The new company being 49% owned by the major)
    29 Jan 2013, 11:36 AM Reply Like
  • Yes they are off limits to the Chinese and the Chinese are our friends.

     

    The USA being unfriendly to Canadian corporations and interests will surely not be allowed to bid.

     

    The USA can continue to deal with its good Allies like Venezuela, Saudi Arabia, Egypt and Iraq.

     

    The pipelines will head West, the amount of Chinese investment in the oilsands and shale gas plays in the last 3 years will ensure it.

     

    Your political grandstanding and love of solar, ethanol and wind subsidies and pandering to the green crowd will ensure further destruction of US influence in the world.
    29 Jan 2013, 11:36 AM Reply Like
  • Another way to look at this. In this business, there is always give and take. Canada wants the Keystone pipeline built and the delay of this project has already put some stain on relations between the 2 countries. A large American multinational may decide that Encana would be a good deal and fit for it going forward and decide to take a run at Encana (Encana has half its assets in the USA). So give and take would dictate that both sides give some and the deals go through. Though there really is no relationship between the 2 deals, politics would dictate other wise and Canada's position on Keystone would be weakened if they prevented a takeover of Encana by a large US company. JMO and one of many possibilities.
    30 Jan 2013, 11:58 AM Reply Like
  • Dogpound....I agree. This takeover rumour is old news.
    29 Jan 2013, 11:09 AM Reply Like
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