eqn takeover, page-8

Steve666 you'll have time to make a choice and get some good advice, weeks I would expect. You will been sent offer documents etc...

3 choices.

(1) If you don't think there is the possibilty of another bid and see some risk in the deal proceding you should take the market price. CGG price will probably drop back without the bid to somewhere inbetween 52c and 42c.

(2) If you do see the bid proceding but don't want to take up the offer.

(a) EQN gets less than 90% of shares, you can remain as most likely a minority shareholder of CGG. This I have seen work well on a few occasions, the shares will remain listed so you can buy and sell. In this case I would imagine the shares would track the parent or do slightly better (my opinion). Eventually they would be gobbled up by EQN at market price.
(b) The large shareholders all sell, and EQN do get to 90% of CGG, compulsory acquistion kicks in, and you will have to accept the deal. (Very likely on this occasion in my opinion).

(3) Accept the bid. You get the 10.5cents a share and the EQN shares which should do well into the future (again my opinion)


I am planning to ignore (1) and hover between (2) and (3). I think the share swap will not trigger a tax event on that portion of the deal, but I will wait to see the offer documents.

Again after reviewing EQN and the tie up with CGG in a morning of reading (so not long and very untrustworthy), it all looks positive, just not as positive (or risky) as CGG by itself. And I think there is a strong possibility of EQN becoming a target in its own right one day.

Happy for others to contradict/confirm this.
DYOR