Venture Production Share Discussion Threads

[exmooroil] 14/8/2009 07:06

CNA still can't raise its offer price unless a rival bid emerges. If that doesn't happen, and I can't see the extension to 28th August garnering any more support -certainly not 10% more -, then the offer lapses, leaving VPC in limbo for 12 months (?) until CNA comes back with a realistic offer. In the meantime, CNA retains 29.9% of VPC + convertibles purchased from 3i, and has not met its objective of buying upstream NS gas assets.

With the position difficult for both parties, there has to be a catalyst to unlock this situation.

[bountyhunter] 13/8/2009 22:28

and CNA's cohorts will be keen to snap up the shares up to 845p; if CNA or those buying for them pay any higher then the 'final' bid price has to be raised to at least the minimum price paid by them for VPC shares regardless of what CNA have said

[hysteron] 13/8/2009 22:12

Shouldn't change much tomorrow the 845p is still there for those that will take it.

[ed 123] 13/8/2009 22:08

That result surprised me. Well done to MW and crew, and to holders who wanted VPC to keep its independence.

Where now for the sp? Longer term it should go very well, imho. Short term, it looks like falling.

I'm not sure about this, Phillis. Can those who sent off acceptances for the 845p offer sell their shares in the market tomorrow? Or must they hold on until the end of the extended period?

When they are free to do so, a number of the acceptors will sell and move on to the next 'easy money' target.

I was a long way out with my guess about the level of acceptances. Here's another hostage to fortune .... low point for tomorrow 760p.

[hysteron] 13/8/2009 21:05

If it drifts off too much I will buy more, CNA will pay at the end of the day a minimum of £10 which is what Arclight and Larry Kinch want. I have said before I can wait, After all VPC is worth minimum £10.

[hysteron] 13/8/2009 21:00

For what it's worth the VPC share price hopefully will shake off the shackles of the CNA bid. However that could be up or down :o)

[ygor705] 13/8/2009 20:55

Can't see CNA getting there now which probably means a 7 or 8 month stalemate. Expect the share price to drift off.

[bountyhunter] 13/8/2009 20:43

yes the tactics have consistently been smoke and mirrors with CNA bertie! ;-/

[bigbertie] 13/8/2009 20:32

isn't the important number 35.2% of the diluted equity? CNA said they needed 50% of the diluted equity to satisfy the acceptance criteria, so they are a long way off yet!

[hysteron] 13/8/2009 19:49

More reasonable reporting IMHO


Energy company extends takeover bid

British Gas parent Centrica has extended the time limit for its hostile £1.3 billion takeover bid for North Sea gas company Venture Production.

Centrica, which already owns 29.9% of its target, said it had received acceptances in respect of 10.9% of Venture's shares.

The firm's offer has expired and while it did not increase its bid, Centrica gave shareholders until August 28 to respond.

In a statement the company said the offer was final and will not be increased. The firm's unsolicited offer for Venture has already been rejected by the board's management as "substantially undervaluing" the business. Earlier this month, Venture chairman John Morgan wrote to shareholders saying the bid was "opportunistic".

"My message to shareholders remains clear - do not sell your shares on the cheap to Centrica," he said.

Centrica, which first took a stake in Venture in March, has upped its holding following the acquisition of private equity firm 3i's 5.4% share.

The energy giant wants to buy the company to boost its gas production and reduce its dependence on volatile wholesale markets.

The firm can currently produce around 35% of its energy needs out of its own resources, although this should increase to 45% with its acquisition of a 20% stake in nuclear power firm British Energy from French energy giant EDF.

Buying Venture would mean that Centrica could supply 60% of its energy from its own assets and resources. Venture is an exploration and production company which acquires, develops and brings into production discovered but undeveloped oil and gas fields in the North Sea.

In 2008, the firm virtually doubled operating profits to £231 million with revenues up 38% to £494.9 million after higher production levels and commodity prices.

Copyright © 2009 The Press Association. All rights reserved.

[hysteron] 13/8/2009 19:26

Very interesting, even I couldn't have predicted that result which is pathetic, seems like the majority agree with MW that 845p is toast. The board of CNA should hang their heads in shame. A good example of how NOT to conduct a takeover bid, the boards of these large companies are payed big money to get things right. Looks like a waste of money, they should have offered >950p the high from last summer then they would still have got VPC on the cheap IMHO.

[o1lman] 13/8/2009 18:55

Zing, they cannot raise the offer without another offer being made, doubtful any other offer will be made as it would also mean going hostile. I cannot see the need for VPC to introduce a White Knight, maybe they have forked CNA after all, but maybe early days.
CNA have tried to buy VPC on the cheap, nearly all the other recent bids made have sailed through because they offered a premium in the bid price, Insti's realise that if CNA fail this time, because of their holding they will have to come back in the future with a better offer, where there may be other bidders waiting.
If the bid fails, my advice to MW would be to spend the money and get a rig onto the Cedar prospect as soon as possible and try to prove up the field thus enhancing the maximum value for it's present shareholders.

[zingaro] 13/8/2009 18:48

Great news, Centrica getting only 10% of the remaining 70% of votes. A massive rejection. Can they raise the offer in the extended period? If not then its doubtful they will even get another 5% never mind the 9+ that they need for control.

[o1lman] 13/8/2009 18:31

Shill, in my local graveyard there is buried there a lady called Fanny Fiddling, maybe that would be a hobby u would be good at unlike your other hobby shares.

[o1lman] 13/8/2009 18:17

35.2% on a fully diluted basis, not much progress there then, I note how Shill hedged her bets at the end, unlike her earlier posts.

[phillis] 13/8/2009 17:35

Phillis - 11 Aug'09 - 12:30 - 6810 of 6822 edit

no white knight then

Most PIs will sit on their hands so institutions will - as always - determine whay happens on first closing.
Probably a chance that 50% will not be achieved and offer will be extended

[cwa1] 13/8/2009 17:28

Acceptances....



As at 1.00 p.m. (London time) on 13 August 2009 (being the first closing date of the Offer), Centrica Resources had received valid acceptances in respect of 16,266,374 Shares, representing approximately 10.9 per cent. of the current issued share capital of Venture and approximately 9.4 per cent. of the ordinary share capital of Venture on a fully diluted basis.

Centrica Resources already owns 44,781,179 Shares representing approximately 29.9 per cent. of the current issued share capital of Venture and approximately 25.8 per cent. of the ordinary share capital of Venture on a fully diluted basis.

Accordingly, as at 1.00 p.m. (London time) on 13 August 2009, Centrica Resources either owned or had received valid acceptances of the Offer in respect of a total of 61,047,553 Shares, representing in aggregate approximately 40.8 per cent. of the issued share capital of Venture and approximately 35.2 per cent. of the ordinary share capital of Venture on a fully diluted basis.

Not exactly very high, eh?

[davidhp] 13/8/2009 16:33

My feelings exactly.

Phillis seems to spend her time raging against holding therefore the fair assumption is that she's already sold and so... why is she STILL here? Because we haven't?

What is it to her? Is it out of the kindness of her big corporate heart that she points out these gentle encouragements?

During the Japanese campaigns in WWII, the Japanese would play female voices over loudspeakers suggesting "Tommeee... your king doesn't respect you! Lay down your guns and come out and let us be friends! You will be treated well.". I recall reading they found one gullible Geordie lad's head on a spike by a trail in Malaya! Makes ya think, doesn't it!

Is Phillis our own personal 'Tokyo Rose'?

[o1lman] 13/8/2009 07:52

Strange thing if u re-arrange phillis u get Shill PI, one positive thing is if VPC do get taken over we will not have to put up with Shill PI anymore !!

[phillis] 12/8/2009 19:48

HP
you are talking through your back passage

all I do is point this out

[f1araway] 12/8/2009 19:12

Chopsy:

"Nice close above 840p, creeping up"

- to what, 845p? - Oh goody - they still aren't getting mine.

[bountyhunter] 12/8/2009 16:38

looking back to the (successful) hostile takeover of AWG in 2006...

OFFER WHOLLY UNCONDITIONAL
AWG finally declared its offer wholly unconditional on 23 November 2006 when Osprey's share purchases and offer acceptances amounted to approximately 77.3 per cent of AWG's shares. It took another three weeks before Osprey had sufficient acceptances (90 per cent of AWG shares to which the offer related) to allow it to initiate the squeeze-out of non-assenting shareholders.

CNA may have more of a struggle if they are to achieve their objective (imho) - we may of course find out tomorrow when my guess fwiw is that the offer date may be extended.

[chopsy] 12/8/2009 16:37

Nice close above 840p, creeping up.