My understanding of the nonconforming bids that the company reported to have received is that the portion of the resource that these bidding parties sought could have been greater than the 1/4th - 1/3rd stake that the company considers conforming. I wonder if this is a segue to bids coming in for all of InterOil in the coming weeks. I assume that such an event would have to be disclosed immediately. Just a thought.
Pick, my understanding of the "nonconforming" bid is that it is a cash and stock deal. Say 2 billion is cash and 1 billion in stock of the buyer. Don't know those numbers are right but I understand that is the deal
On the short thesis this gives the company an out come March to say it received no conforming bids and will need more time to study the proposals. As the bids are non-conforming and still under the black box rules investors would not know and more time would be taken. A partner would not necessarily be announced due to the non-conformance of the bids. Not a straight up clear winner based on X dollars for 20% as each bid is for varying %'s and perhaps even attempts at %'s of Tri.
When I took the spread sheet of the votes for money up front and the $perMMe from SHU was an interesting case of what IOC must be doing to make a decision. Not all is clear as to value and expectations. Toss in looking at equipment effciencies and constructability of plants etc it becomes a hard procedure especially if plans continue to change as resource CLIMBS!!!
These rumored nonconforming bids, for stakes larger than the company considers conforming, are a potential bonanza for shareholders. Keep these thoughts of higher stakes building toward the entire company.
When is a bid a bid?? The most interesting time will be after IOC selects a partner. The question is what will the losers do?? Some will try to buy it all seems reasonable. What price will the Top Ten shareholders find adequate???Thats 70% of the shares.