Is This A $2,200,000,000 Blunder?

| About: InterOil Corporation (IOC)


Oil Search is buying InterOil for $2.2 billion.

Bids are light for Yahoo!

Give a hedge fund manager $100k!*.

*He isn't keeping it; he is raising it for KIPP charter schools.

Welcome to the Headhunting issue of M&A Daily


Oil Search (OTCPK:OISHY) is buying InterOil (NYSE:IOC) in a $2.2 billion deal. IOC holders get 8.05 Oil Search shares plus a contingent value right. The implied deal value of the stock component of the deal is $40.25 per share. For a background on the deal target:

Pro subscribers can access an additional piece here. InterOil is one of the few publicly-traded companies whose risks and uncertainties include decapitation.


It InterOil's future looks like its past, this deal could be a $2.2 billion blunder.


Suitors for Yahoo! (YHOO) are expected to bid between $2 billion and $3 billion for the company. Verizon (NYSE:VZ) is likely to be the winner.

Ingram Micro

The definitive proxy has been filed for the Tianjin Tianhai acquisition of Ingram Micro (NYSE:IM). The Ingram Micro shareholder vote is on June 21st.


The preliminary proxy has been filed for the ExamWorks (NYSE:EXAM) acquisition by Leonard Green.


The Notice of Effectiveness of the S-4 has been filed for the FormFactor (NASDAQ:FORM) acquisition of Cascade (NASDAQ:CSCD). The Cascade shareholder vote is on June 23rd.


The preliminary proxy was filed for the Lexmark (NYSE:LXK) acquisition by Apex. More to come in future editions of M&A Daily

Further reading

More to life

Help Whitney and KIPPsters climb the mountain

This July, Whitney Tilson is taking on two Alps giants in honor of the 5,711 KIPPsters climbing the mountain to college.

One of KIPP's primary mottos is "climbing the mountain to college." Over the course of five days, he'll climb Mt. Blanc and the Matterhorn.

I support KIPP to help more KIPP students make it to and through college. You can do so online by clicking here.

Disclosure: I am/we are long IM, LXK, ALXA.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law. We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

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