The 20% shares of DLS in AQO is surely a big stake but it does not matter, the higher bid will be the king. These types of things happened in the history of ASX. I am just remembering what happened to Arrow's 20% stake in Pure Energy when Arrow made and offer for Pure Energy's coal seam gas tenements in QLD and received multiple counter offers by BG Group in 2009. Arrow started the bidding war but had to happily sell its 20% to BG Group at a good price. See the graphic below for the full story. A similar thing could happen to AQO. I am sure that we will see new bids as both companies are keen to get this tenement.
Also, it should be remembered and considered that MHR is already holding 52.5% and operatorship of PEL570 through NSE which it had the majority shareholding. Therefore, MHR has a bigger advantage over DLS IMO.
Yes, there are many other alternatives for both bidders to make different agreements with each others on this tenement. They may come up with a agreed offer to buy it together. The time will tell that.
DLS Price at posting:
$1.56 Sentiment: None Disclosure: Not Held
AQO Price at posting:
32.5¢ Sentiment: None Disclosure: Not Held
