IMHO, its pretty simple, the main shareholders of AQO never wanted to hold Magnum Hunter shares. They know this is the best deal they can get from DLS. They want cash, they want continued 100% exposure to the Cooper Basin and DLS is offering that. Magnum is offering neither.... no cash and tiny, possibly 1% of their company's assets will be focused on the Cooper.
For what its worth, I think DLS is paying too much. I like that it was a script only deal. Now they have wasted actual cash on an asset that will, at best prove to hold something in a couple of years time. They should just focus on what they have in the Cooper.
NSE Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
AQO Price at posting:
33.2¢ Sentiment: Hold Disclosure: Not Held
DLS Price at posting:
$1.52 Sentiment: Buy Disclosure: Held
