Oil Search Valuation & Target Price, page-494

Hi Sircorp and Chadshare, agree, but diluting the Oil Search EPS is totally different from the direct dilution to share price. If your estimate is right, the 19 Million Shares which will be bought back can be sold at the market now at a price more than the buy back offer price which is based on the 10 day average at the time of agreement. Also, the remaining 36 million Inter Oil Shares minus the 5 million employee shares can be sold at the market now at higher price, unless no one is buying at a massive sale, but don't forget Interoil has only around 2 billion market value, less than 61% cash take by Total. The risk is not high at all. EPS might be diluted, but the great oil/gas asset added to OSH will counteract the dilution even more I reckon. Otherwise why the deal?