AQO (ASX) DLS is late for the move. MHR will not give up easily

Originally posted by gosh ↑

[[[[this is a newspaper article just out]]]]The takeover battle for energy junior Ambassador Oil and Gas is heating up, with Magnum Hunter lifting its offer.
US-based Magnum has been trying to win control of Ambassador but faces stiff opposition from Drillsearch, which on Monday topped up its share swap offer with cash.
Magnum responded on Tuesday by increasing its bid to the equivalent of 38 cents per Ambassador share, saying it was worth 15 per cent more than Drillsearch's increased bid.
Magnum is now offering one of its shares for every 23.6 Ambassador shares.
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It also is making an application to the Takeovers Panel amid concerns about key Ambassador shareholders who have accepted Drillsearch's revised offer.
Ambassador has recommended the revised Drillsearch offer, saying it was superior to Magnum's due to various conditions placed on the US offer.
About a third of Ambassador's shareholders have accepted Drillsearch's offer, including chairman David Shaw and chief executive Guistino Guglielmo, who together hold a 6.34 per cent stake.
Magnum says their acceptance of the Drillsearch offer has denied other Ambassador investors the chance to consider the improved Magnum offer and has handed control of the company to Drillsearch.
"Magnum Hunter is concerned that such acceptances have not taken place in an efficient, competitive and informed market and are inconsistent with the actions that would normally be associated with achieving the best possible outcome for Ambassador shareholders," Magnum said in a statement.
"Consequently, Magnum Hunter intends to make an application to the Takeovers Panel in relation to these circumstances."
Magnum said its fresh offer was superior to that of Drillsearch and that it believes its New York-listed common stock is a more attractive investment than Drillsearch ordinary shares.
Ambassador has exploration assets in South Australia's Cooper and Eramonga onshore oil and gas basins.
Drillsearch, which now holds more than 50 per cent of Ambassador's stock, has assets in the same region.
Ambassador shares were due to resume trading at 1100 AEST, while Drillsearch had added 2.5 cents to $1.535 at 1011 AEST

Read more: http://www.smh.com.au/business/mini...il-heats-up-20140617-3aa36.html#ixzz34r9mmLYm

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What.... monetary value is the only metric to declare it being a superior offer?

Surely there are other factors such as future growth opportunities, that is to say MH future growth prospects may or may not be superior to DLS's prospects.... and vice versa.

Superior is an abstract notion and can mean many things to many people.

In any event the directors have sold their shares that's their business (unconditional) they have not recommended that AQO SH accept the DLS offer and can still recommend the MH bid. Just means now that DLS will be in control and if the rest of the shares are held by MH they will probably get a seat at the board. With all the money they saved on the acquisition they can fund the drilling programme in PEL 570.

I'm not sure about the legal position of DLS but one thing to remember is that Brad Lingo was an acquisitions expert before joining DLS all those years ago.

As I said before fascinating to watch, not high end, but fascinating nonetheless.

Cheers
BW

What.... monetary value is the only metric to declare it being a...

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