I don't think so Jalzz,Magnum Hunter would have thought about...

I don't think so Jalzz,

Magnum Hunter would have thought about this before making the offer. No doubt they would have considered the takeover option but saw that they would have struggled to acquire even a few million shares on market before pushing the price to 25 cents (i.e. given low liquidity). The time for a takeover was before signing an agreement that put upward pressure on the price.

Actually, the option deal is probably the cheapest way Magnum Hunter can get a large chunk at below 25 cents (i.e. apart from management issuing them shares as part of a CR). If Magnum want to do a takeover, it will come later. But I think they just want a stake in AQO and to work cooperatively with management going forward on some very exciting acreage.

For me the big question is not whether Magnum's money will be forthcoming. Are they cashed up for sure?