merger details out, page-188

stlamc

I'm not defending management but the SEA consideration shares are also undervalued by reference to their own reserves. As I pointed out in an earlier post, we're still out of pocket on those valuations but only by about 20%.

The market movement in price is also suggesting that the deal is worth more than appears to be the case unless the buying is based on speculation of another bidder.

Much the same was said when AUT/ADI/EKA gave away 50% of their Sugarloaf etc AMIs to Hilcorp for Hilcorp's cash and expertise. Well, SEA has cash at least.

The proposed deal is just a reorganisation of our interest in the EFS (is that not how it would be treated for tax purposes?) not a sale.

I'm certainly disappointed with the terms but TXN didn't have time on its side.