Faroe Petroleum Share Discussion Threads

[bountyhunter] 26/11/2018 12:40

#1414
Yes Steve that's very true, and there were jobs for the boys for the IAE BoD but I can't see the FPM BoD being at all interested in working for DNO!

[vikingbhoy] 26/11/2018 12:31

DNO can buy as much as they want, in the open market or otherwise. But if they pay more than 152p they will have to increase the offer to match whatever they paid

[thegreatgeraldo] 26/11/2018 12:17

robs12
26 Nov '18 - 08:44 - 1401 of 1415
0 0 0
With the bid formal now announced, are DNO allowed to buy in the open market?

Yes, but of course, they can't pay over 152p ;-#))

[wbodger] 26/11/2018 11:17

That's the point redart. They don't need many, and I think they will feel chuffed if the only have to pay 155-160. Maybe that's what the market is saying.

It's a bit of a wait-and-see at the moment.

[redartbmud] 26/11/2018 11:05

Wb

They need to get around 21.79% of the issued shares to gain control, and that isn't too much of a stretch, if Blackrock, Aviva, Invesco and L&G sold out, that is 22.07%, assuming that the company website is up to date.

[jasper2712] 26/11/2018 10:56

Pity DNO did not word their offer more accurately to reflect the true value of FPM . If they had said that following another discovery by FPM and the possibility of more to come in the coming months we feel we need to make an offer before the price gets away from our grasp. Our offer of 152p/share, although 12% lower than the recent high , represents good value for us as we don't want to miss out on a bargain, seeing as it is Black Friday season!
I can only hope that the board rally round and tell them where they can shove their bosom.

[wbodger] 26/11/2018 10:44

They already have 30%. The market is trading above the bid against the possibility that someone else comes in. That's why it's such a premium - it would have to be big to beat DNO when they already have 30%.

My guess is DNO have agreement from some major-ish holders and have a target around 160 if this doesn't go through. Major shareholders will take the money and run in this PoO market.

Small shareholders just noise, imo.

[redartbmud] 26/11/2018 10:39

It will be a pity if it does go at these levels, not least for the long term shareholders, who have kept the faith, in the down times, and who have kept us informed with a raft of technical data.
The current business development plan is now beginning to bear fruit, with some excellent returns on the horizon.
It would be a great shame to see it go the DNO for what is a derisory price.

Oli
Yes, but they have now gone, so it is possible that current holders, like me, will be far more resilient.

[oli12] 26/11/2018 10:24

Surely DNO know that the FPM board will strongly rebuke this offer and tell shareholders to decline it however whether they listen is another matter. We saw many sellers happy to cash in at 125. Let’s see, one would expect a sweeter to 175 which is still low but better than the current offer.

[cwa1] 26/11/2018 09:31

Response to announcement made by DNO ASA ("DNO")



Faroe Petroleum plc ("Faroe") notes the announcement today by DNO of an unsolicited offer for the whole of the issued and to be issued share capital of Faroe Petroleum plc of 152p in cash per Faroe Share (the "Offer").



DNO did not engage with Faroe before making the announcement of its unilateral Offer.



The Board of Faroe will meet together with its advisers to consider the Offer and a further announcement will be made in due course.



In the meantime, Faroe shareholders are strongly urged to take no action in relation to their Faroe shares.



- Ends -

[talkman2] 26/11/2018 09:22

It’s hostile , they are going to have to offer more .

[bountyhunter] 26/11/2018 09:12

obviously sludgeserfer; I really can't see FPM senior management being swayed by DNO unless they were to come up with a considerably higher offer

[rogerlin] 26/11/2018 09:01

As it's a cash bid we don't have to worry about whether we like the management of DNO or its assets, or what the future would be for Faroe as part of DNO (likely without the present senior management), only the price offered.

[sludgesurfer] 26/11/2018 08:57

BH, you attribute greater significance to the board stance than I do.

[vikingbhoy] 26/11/2018 08:53

Would expect them to revise the bid up 15% or so

[bountyhunter] 26/11/2018 08:45

no, not above 30% holding which they are already very close to

[robs12] 26/11/2018 08:44

With the bid formal now announced, are DNO allowed to buy in the open market?

Couldn't before because it would have taken them over the limit to announce a bid, but if they can now start buying at 150p or more, that is still a great buy for them?

[bountyhunter] 26/11/2018 08:41

The market has already priced in a rejection of this derisory offer attributing a higher value to FPM, expect a robust reply soon from the FPM BoD imo

[bountyhunter] 26/11/2018 08:36

The big difference with IAE is that the BoD caved in!

[vikingbhoy] 26/11/2018 08:03

Their reasoning:

Specifically, DNO wishes to safeguard its investment against three key concerns:

 The continued unwillingness by Faroe directors to consider proposing board representation to its largest shareholder, DNO, much as the Faroe directors have refused to consider granting board representation to other large shareholders in the recent past.

 Without such representation and active shareholder “say on pay” at the board level, no protection against continued shareholder dilution via what appear to be very generous option schemes which benefit Faroe directors and others.

 No assurance of Faroe achieving its full value potential in a volatile commodity
and financial markets environment as a relatively small scale, financially constrained UKAIM listed company whose share price performance has remained stubbornly disappointing, with the very notable exception of short-term spikes following the sale of a particular large block of shares by one investor to another (most recently to DNO) and the attendant speculation about an impending takeover premium with each such transaction

[robs12] 26/11/2018 07:57

Very odd. Surely they can't believe any shareholder will take that seriously?

[sleveen] 26/11/2018 07:47

bradiculous

[bountyhunter] 26/11/2018 07:46

Also expect some posts on here today from posters with DNO interests doing a TM style sale of a bad deal!