i'll accept your calculations and evaluation of the outcome as less than stellar. That said, they were positioning for a buyout of pride, which would have been a much bigger positive. Not all deals work out as planned. As a missed deal, it doesn't look bad to me. Appreciate your knowledgeable posts.
lol moron, SDRL received the shares in spin off as a result of its ownership in Pride, which is going to net JF and SeaDrill shareholders $625M in profit when Ensco closes on Pride (or before if he choses to sell)...Can you say "special divy" for SeaDrill shareholders Cline...?...*smirk*
BFD, 2M HAWK shares to JF is the same as 100 to you and me...Still worth $7M+ and its FREE money, it was a spin off...
Cline, you can't get anything right...Still don't have a clue!
"which is going to net JF and SeaDrill shareholders $625M in profit"
The size of the original investment was about $560 million and the value of PDE position is at the moment $660 million-> gross profit of about $100 million. Return of the investment: $100MM/$560MM= 17.8%. The position in PDE was acquired in the April of 2008 so about 3 years ago. 17.8/3=5.93% per annum.
However that calculation doesn't include the transaction costs or interests. With a 3% interest rate the cumulative interest expense is $50.4 million. (($100MM-$50.4MM)/560)/3=2.95 That's an annual return of 2.95% which is horrible. This investment was a near complete f*ckup.