"Argonaut’s head of corporate finance, Eddie Rigg, said the bid had been made after AWE shareholders, who he would not name, made contact with China Energy after AWE rejected the original approach. Mr Rigg did not rule out changes to the bid if AWE engaged with CERCG and opened its books.
“It (the 73c bid) is designed to be a successful price ... at the moment, we can’t speculate on what will happen if they give us due diligence,” he said.
Macquarie analysts said the offer was a fair price and above the bank’s target price of 60c per share. “We believe a fully de-risked Waitsia project would only add another 10c per share, thus we see the offer including full de-risking of Waitsia and existing producing projects,” the bank said.
RBC analyst Ben Wilson said the bid was too low, based on his target price of 90c per share."
DYOR
AWE Price at posting:
73.0¢ Sentiment: Hold Disclosure: Held
