Investment Evolution Cre... Share Discussion Threads

[katsy] 17/12/2008 13:59

serratia ring the helpline that was on page 2 of the IEC offer document.

[serratia] 17/12/2008 13:55

Well nothing in the post today from Jarvis so my forms will not be returned by friday.

[squintyflinty] 17/12/2008 13:39

Just contacted Merril lynch.It was re-iterated that they were receiving VERY positive feedbacks from the institutions,so there is NO justifiation for the easing in the share price.

[imperial3] 17/12/2008 13:30

Why such weakness now?

[imperial3] 17/12/2008 13:27

Anybody been watching the current positions of hedge funds?

[squintyflinty] 17/12/2008 13:09

When is T D Waterhouse submitting their first batch of votes?

[imperial3] 17/12/2008 12:48

Seems as this is going to the wire.

[cool hand kev] 17/12/2008 12:40

reasuring to see some institutional longs ie last RNS

[jac1104] 17/12/2008 12:39

Bite their hand off
Posted by Neil Hume on Dec 16 12:15.

OK, so Imperial Energy and its advisers didn't say that in Tuesday's statement but they might as well have done.

Given that the first closing date, being Tuesday, 30 December 2008, falls between Christmas and New Year and in view of the fact that there is currently speculation regarding a postal strike in the United Kingdom, the Imperial Energy Directors are strongly recommending that Imperial Energy Shareholders accept the Share Offer as early as possible and, in any event, such that acceptances are received by the end of this week, the last full working week before the first closing date of Tuesday, 30 December 2008, to ensure the Share Offer does not lapse.

As previously indicated, Imperial Energy Shareholders should be aware that Bidco is not obliged to extend the Share Offer beyond 1.00 p.m. (London time) on Tuesday, 30 December 2008 if Imperial Energy Shareholders have not, by that date, validly accepted the Share Offer in sufficient numbers to satisfy the 90 per cent. acceptance condition set out on page 27 of the Offer Document.

The back story here is that India's ONGC Videsh has offered £12.50 a share for Imperial but has been dropping none too subtle hints that it would like to renegotiate or back out.

It recently made an unseemly attempt to extend the deadline for publication of its offer document, which the Takeover Panel quickly rejected.

The reason ONGC has got cold feet probably comes down to the fact that a barrel of oil now costs roughly a third of what it was worth in August, which is when the state-controlled Indian group made its offer.

That said, the Indian press has been hinting at other reasons. Witness this from India's Business Standard over the weekend
The scientific and technical officers of Oil & Natural Gas Corporation, or ONGC, have objected to the company's decision to go ahead with the $2.1 billion acquisition of Imperial Energy of the UK, saying that the deal is over-valued and the assets not financially viable.

The current crude (oil) production of the company (Imperial) is close to 12,000 barrels a day only. This figure is also debatable as the technical team that visited the fields found that the production was around 8,000 barrels a day. The upside of production, as being planned, calls for huge investments in the field in addition to the investment being made to acquire the company. The field terrain is very tough and inhospitable," said ASTO

Whatever the reason, it seems that ONGC has little chance of wiggling out of this deal, unless of course posties go on strike this Christmas.

That is by no means impossible especially in the light of Tuesday's story in the Daily Telegraph of a government plan to sell a large stake in Royal Mail to a foreign postal company.

But even that might not be enough. Word reaches FT Alphaville that Legal & General (a 4.4% shareholder) has already tendered its stock. Presumably, Imperial chairman and founder Peter Levine (who holds 6.2%) has done the same. That only leaves another 79.4% to reach the magic 90% acceptance level.

Shares in Imperial were currently trading at 980p mid-day on Tuesday, a 21.6 per cent discount to the terms of the offer.

This entry was posted by Neil Hume on Tuesday, December 16th, 2008 at 12:15 and is filed under M&A, Capital markets. Tagged with Imperial energy.

[grbaker] 17/12/2008 12:30

Well, this is turning into the most stressful Christmas ever for IEC holders... if you hold shares just say YES!

[miamisteve] 17/12/2008 12:17

I've finally received notification from my bank, 23rd of December as well.

[abcd1234] 17/12/2008 12:13

monkey, l&g said on the FT some days ago they were voting yes, so add them in

[shiny1000] 17/12/2008 12:02

Just doesn't look right, even I'm peed of Katsy.

[yuka] 17/12/2008 12:00

Davius - in most cases CFD holders still have to make a decision on the offer like anybody else. For every CFD there is usually a direct share purchase backing it by the CFD provider. I have CFDs but have been told I have to accept the offer by Dec 23rd like everybody else.

[tigmi] 17/12/2008 11:50

London, UK-based Imperial Energy said the first closing date for the offer is on December 30, 2008 and in view of an anticipated postal strike, the company urged the shareholders to accept the offer as early as possible.

[monkey51] 17/12/2008 11:45

Wasn't there stories on Schroders accepting and a few other too? Saw something on the wires plus re L&G holding. Besides, am sure these are not the only ones, which would mean we are edging closer.

9 from Baillie, 6.5 from Directors, 8 from Schrobers etc - makes me pretty optimistic.

[tigmi] 17/12/2008 11:44

They do now but they told me that the T20 trades had been pulled due to the risk and market volatility over the autumn. I assumed this was across the market and all brokers were the same yet I come on here and see lots of brokers offering investors the opportunity to do T20 trades.

I think I have been duped!

[miamisteve] 17/12/2008 11:42

Katsy. - It's going through. Don't know if it will be tied up this week as I doubt DB will vote until the last, but it will happen.

[davius] 17/12/2008 11:41

> Why would they go long on CFD'S and then sell a million shares.

Several reasons. Gearing, smaller margin required on CFDs, no need to stump up the cash for shares sold inside a T-Trade, no need to commit to the offer...

[debbiegee] 17/12/2008 11:41

I took a T20 yesterday from Hood .
Do C Stanley know about the assented facility ?

[katsy] 17/12/2008 11:36

This is showing all the symptoms of the deal falling through. I'm sorry to say, ;-/

Blame me, because I've never been in a share where a successful take over has been achieved.

[tigmi] 17/12/2008 11:28

Charles Stanley tells me they can not do T20's anymore - Has anyone else had this problem with their broker?

[debbiegee] 17/12/2008 10:40

markets too confused at the mo waiting for the US keeping powder dry ?
The market is herd when they are sure which way the leaders are going they will follow.

I calculate a T20 taken out today would be due 20th Jan.
I expect some of the hot money that left to start returning as soon as we have any momentum.