Falcon Oil & Gas Share Discussion Threads

[dalgaard] 24/9/2003 09:08

Sterling have already shown their hand - I seriously wonder how they can expect to get backing for 40p takeover (and of course FOG rejected Sterlings initial attempt although we don't know what price was offered). Also, the Westmount deal was very dodgy with Westmount already having a holding in Sterling (and a person on FOGs board!). This could get messy but hard to see downside for the shareprice. Sterling will have to do something extraordinary to move this forward unless they're willing to pay the premium we're all looking for (and any speculation on what that premium might be would be pure guesswork! - dyor).

Even without a takeover it's going to be pretty interesting over the next year with the number of wells FOG are involved in.

[sheneeqa] 24/9/2003 00:00

Probably trying to scare a few people into selling but they have not had
much sucess. We all know who would like to buy them, also not many oils
positive today.

[ilancas] 23/9/2003 08:28

Anyone know why we've been marked down at the open this morning?

[sheneeqa] 23/9/2003 08:08

Agreed but they will be doing everything in their power to get them for less.

[bantam175] 23/9/2003 00:23

Hang on in there. We should make Sterling pay at least 50p p.s.

[djalan] 20/9/2003 10:15

Sterling takes aggressive Fusion stake
By Lachlan Johnston (Filed: 20/09/2003)


Fusion Oil and Gas appeared headed for a hostile takeover yesterday, after fellow oil group Sterling Energy snapped up 20.4pc of its shares.........

[dalgaard] 20/9/2003 00:45

As far as I can see from the statemetn, it doesn't look like Sterling paid a huge premium to Westmount (+ Sterling share price has ca. doubled since April, in other words assuming Sterling had been able to buy at same price back then (all very theoretical), Westmount would have had twice as many shares in Sterling....).

Sterling has now managed to get hold of 20% of FOG without paying any cash. Not sure how much cash they have - maybe enough to buy remaining 80% at higher price than initially offered? (not sure if the original offer was in shares or cash?) Does look like they're determined to get their hands on FOG. Only worry is that Westmount seemed more than happy to sell. Nevertheless seems to be little downside to shares at this point in time given perceived Sterling determination.

Well results looked pretty good with 38m net oil column but not sure what they were expecting in the first place?

At time of writing share price down a we bit on the day - I expect it to be heading upwards next week but as always dyor.

[gerry2] 19/9/2003 22:47

Note this bit from that RNS :-
" Derek Williams, chairman of Westmount stated: "We believe this deal
represents excellent value for Westmount and reflects our continuing confidence
in the judgement of the Sterling board. Our decision to sell follows mounting
disappointment in the performance of our investment in Fusion since the
flotation, and our strong belief in the merits of combining Sterling's strengths
with Fusion's exploration portfolio."

[gerry2] 19/9/2003 22:42

Kim-Clay
Looks like the offer has been done .
Sterling owns 20.4% of Fusion.
While Westmount in turn owns 17% of Sterling :-



I calculated Sterling paid 44.6p for each Fusion Share do you concur .

[lgw] 19/9/2003 19:03

The FOG directors have already rejected the 40p offer so surely the offer must be significantly over this amount to even stand a chance of being put to shareholder vote.

[dalgaard] 19/9/2003 18:07

djalan - 19 Sep'03 - 16:58 - 837 of 842

40p/share bid sounds like a ridiculous offer - see no way in this world how Sterling will get away with that - that would leave too much downside risk for FOG shareholders (exposure to Sterling which has recently risen 100%) if it was anything but a cash offer. Even if cash doesn't seem to present fair value given FOG current state of affairs (although Westmount maybe thought otherwise).

[trash_it] 19/9/2003 17:17

getago - 19 Sep'03 - 17:14 - 840 of 842
Don't need that...! I already have a crystal ball. ha ha....

[lgw] 19/9/2003 17:16

FOG market cap is 37.8 mill so 40mill offer is hardly generous.
What are the implications of below



RNS Number:9917P
Fusion Oil & Gas PLC
19 September 2003





Fusion Oil & Gas plc (the "Company")



The Company was admitted to trading on the Alternative Investment Market of the
London Stock Exchange in September 2000. In its Admission Document the Company
stated that its head office and place of central management was in Australia and
therefore the Company was not subject to the provisions of the City Code on
Takeovers and Mergers (the "Code"). However following consultation with the
Panel on Takeovers and Mergers the Company can confirm that, since the migration
of its head office and central management to the UK in June 2003, the Company is
subject to the provisions of the Code.



19 September

[getago] 19/9/2003 17:14

Choices concerning your investments can sometimes be very confusing and frustrating. Leave the angst behind and let this help with your choices. Their history is very impressive and you have nothing to lose.

[trash_it] 19/9/2003 17:07

bye bye fog, welcome the sun!

[djalan] 19/9/2003 16:58

UPDATE - UK oil firm Sterling prepares Fusion bid
Friday September 19, 10:47 am .........................

[djalan] 19/9/2003 16:54

LONDON (AFX) - Fusion Oil & Gas PLC said it is disappointed with Westmount
Resources Ltd's decision to sell its 20.4 pct stake in the company to Sterling
Energy PLC.
In a statement, the company said it is not currently aware of Sterling
Energy's intentions and has not received further approach to date.
"The board therefore recommends that shareholders take no action in
anticipation of any possible offer that might be forthcoming for the entire
share capital of the company.
Sterling had earlier made a approach to Fusion's board but its all-share
offer was rejected as it significantly undervalued the company.
[e-mail]
ra

[dalgaard] 19/9/2003 15:15

Agree - definitely want the cash :)

Maybe they'll offer combination of shares and cash?

Don't know what rules apply for takeovers - what options do Sterling have for a hostile takeover? (I can see them being able to build up stake of 15-20% more from cash giving them max 40% stake). Sterling would have to start discussions with institutional shareholders to gain support - not sure they would gain any support although they convinced Westmount to sell...maybe they'll buy out some institutional shareholders? All too much speculation to draw any conclusions - at least there's some excitement back in this share

[justjus] 19/9/2003 14:41

I was being a bit sarcastic, sorry, just know they're only going to offer shares, will want to hold the cash...

[dalgaard] 19/9/2003 14:35

Justjus

Checked Sterling cash and they've got ca. £7m - not sure how much they need for ongoing operations but they do have $250k/month revenue stream as well. You state they don't have cash to buy 8%? Assuming they spent a bit over half their cash they could buy another 10% - what's your statement based on???

[justjus] 19/9/2003 14:07

Sterling don't have cash to buy 8%, let alone 80%!

[justjus] 19/9/2003 08:59

SEY must have persuaded Westmount that they would be better off invested in them!