4 conforming bids + 1 or 2 other non-conforming bids too??
Chatter is there are at least 4 conforming final bids coming no later than February 28th and there could be another 1 - 2 NON-CONFORMING bids as well. Non-conforming bid = bid for more than 32.5% of E/A ...all the way to 100% of IOC. The IBs will be working feverishly to model each final bid and get financial and deal analysis ready for presentation to the Board in early March. I have been through several deal auction processes involving IBs and multiple bidders. My best guess is the IBs will need 7-14 days to get all the models, scenarios, presentations, opinion letters, internal IB sign-offs, and a final recommendation prepared for IOC's Board.
Very exciting stuff. I would hate to be short starting the week of March 11th.
Thanks, db. I would say closer to 7 days than 14, perhaps the latter is competition is really tight. Per the Company, BOD meeting with IBs the first week of March, probably the first full week with the BOD meeting at the end of that, say March 9-10. Home stretch coming up!
In the IPAA presentation IOC was still talking about conforming bids which they always have said represents the best long-term shareholder value. So any non-conforming bid, I think, would have to knock their socks off to be considered. I think XOM will be involved but maybe only an off-take. They've got a $19 Billion plant to finish and need more gas for it. So I'm not sure if they want to build another plant or will focus on adding trains to their new plant. Total's leases have IOC surrounded. They'll need a plant eventually if they find gas. Gulf LNG would be a great place for them to become established. JKM is still hanging around. It's fun to speculate and I certainly have no idea who's going to win.