CNOOC (Chinese) to Buy Nexen

[Cowboy89]

Originally Posted by Senator Clay Davis

^Now I really don't want this deal go through so those people get stiffed. Insider trading at its finest right there.

Edit: Although I wish I would have known too damnit...

http://www.despair.com/corruption.html

[red sky]

Originally Posted by Knalus

Now, I know it looks like insider trading... but who is getting stiffed? The public?

How about the company that will pay out all those options, CNOOC?

I think they are the ones that would have to pay those people for the options that they just called, no? I mean, if all the shares are going to be purchased by a foreign multi-national, they will be the ones picking up the tab.

These are not company options these are publically traded call options. The people getting stiffed are the option sellers. Not sure who would be taking the other side of such large transactions though.

[Senator Clay Davis]

Thanks for the laugh Cowboy. Of course its wrong!.....unless it benefits me!

[Cowboy89]

Originally Posted by Knalus

Now, I know it looks like insider trading... but who is getting stiffed? The public?

How about the company that will pay out all those options, CNOOC?

I think they are the ones that would have to pay those people for the options that they just called, no? I mean, if all the shares are going to be purchased by a foreign multi-national, they will be the ones picking up the tab.

The people who got stiffed on the alledged insider trading on options are those who sold the call options (which range from everyday retail investors right up to sophisticated money managers). CNOOC only has to pay the value of the employee/executive options which vest on a change of control (of which this transaction would constitute).

[Senator Clay Davis]

I would imagine whoever bought the options probably bought them in the $15-$18/share range, at which point they made a ton of money yesterday assuming they dumped.

[Azure]

Originally Posted by trumpethead

I say the govt approves - simply to show the Americans that while they plod along with Keystone XL approval, we are ready to do business with other global partners. It is deals like these, with partners like these, that create the "are you in? or are you out?" analysis for the US. As a result, this deal may finally get the US "off the pot" with respect to securing an agreement for Keystone and other mega-projects.

On that note.

Cnooc Ltd. (883)’s $15.1 billion cash takeover bid for Nexen Inc. (NXY) signals a Canadian shift toward China and away from the U.S. as the nation’s traditional oil and natural-gas partner and main export market.

Canada’s oil sands reserves, the third-largest recoverable crude deposits in the world, were developed in part by U.S. money as companies such as California’s Richfield Oil Corp. brought technology to extract bitumen from boreal peat bogs half a century ago. Now, for the first time, a Chinese company will own and operate oil-sands crude production as well as Nexen’s shale-gas assets in British Columbia, along with leases in other parts of the world.

“This is really a decoupling of the north-south axis with the U.S.,” Michael Black, a partner with Fasken Martineau DuMoulin LLP who has advised on C$8.5 billion ($8.4 billion) worth of Canadian deals by Abu Dhabi Nation Energy Co. (TAQA), said in an interview. “The U.S. guys just aren’t coming up here the way they used to. It further illustrates Chinese interest in big assets, big reserves and Canadian expertise.”

Chinese oil producers have turned more frequently to Canada after political opposition in the U.S. derailed Cnooc’s $18.5 billion bid for Unocal Corp. in 2005, and after TransCanada Corp. (TRP)’s Keystone XL pipeline route south to Texas was blocked by President Barack Obama’s administration last year.

http://www.bloomberg.com/news/2012-0...nexen-bid.html

[red sky]

Originally Posted by Senator Clay Davis

I would imagine whoever bought the options probably bought them in the $15-$18/share range, at which point they made a ton of money yesterday assuming they dumped.

Here you go: http://business.financialpost.com/20...re-15-1b-deal/

An investor bought 23,000 December $19 calls and sold 11,500 December $16 puts on July 20, according to Joe Kunkle, founder of ptionsHawk.com, a Boston-based provider of options market data and analytics. The trategy profits if the shares exceed the higher strike price by expiration and would make a profit of almost $19 million at the $27.50 offer price.

The same strategy was used to buy more than 20,000 September $17 calls while selling September $16 puts on July 16 and July 17 for a potential profit of almost $22 million, Kunkle said.
“The timing, size, and structure of these trades make it appear that this deal was leaked,” Kunkle wrote in an e-mail today.

[Senator Clay Davis]

Edit: As far as ninja's go, that was impressive red sky

[SebC]

Originally Posted by Knalus

Besides, nothings stopping the executive from Nexen to take their money and use it to create a new company from the ground up. Happens all the time.

If all of Nexen's investors put there money into it, we'd have a new company with a market cap higher than Nexen's... and Nexen would still be here just under different ownership.

[SeeGeeWhy]

http://www.jeffrubinssmallerworld.co...ts-have-moved/

[shermanator]

Canadian government about to announce their decision on the Nexen takeover deal

http://www.calgaryherald.com/busines...113/story.html

[Slava]

Should be interesting. The shares were down about 6.3% at close and the chart suggests that people are not wanting to hold into the announcement. That could well mean nothing, but the final decision will be worth watching.

[username]

EU has already approved the deal.

Rumours are that the OTP fund was selling since they loaded up at around 21. The pension fund is pretty conservative and taking a 10 - 30% gain is way above their targets.

[ComixZone]

it'll be interesting to see people react to this (either way)

[burn_this_city]

According to the ticker at the top of cbc.ca both deals have been approved. If true, I wonder how that will affect the share price of other Canadian O&G firms.

[Fire]

Originally Posted by burn_this_city

According to the ticker at the top of cbc.ca both deals have been approved. If true, I wonder how that will affect the share price of other Canadian O&G firms.

I would suspect most Canadian oil stocks will be up a solid amount on Monday. Longer term I would be wary of them. If the U.S can increase oil production like some think, the demand for Canada's oil (especially from the Oil Sands), will decrease significantly.

[The Fonz]

Originally Posted by shermanator

Canadian government about to announce their decision on the Nexen takeover deal

http://www.calgaryherald.com/busines...113/story.html

The chinese finally just today approved Glencore's 6.25B takeover of Viterra. Viterra/Glencore had been waiting on China's approval for more than 6 months now...

I had heard rumours that China was dragging their feet with this, waiting for Harper to approve the Nexen takeover.

Based on this alone, I'm going to predict Canada approves the deal. Then again, this is not even close to an area of expertise for me. So carry on...

[Table 5]

I don't really have a financial stake in O&G (and thus don't really know that much about the industry), but slowly giving away the controls to the single resource that gives Canada any say on the world stage doesn't really sit well with me. Whether it be American, Chinese, Dutch etc....I think it's poor long term thinking.

[c.t.ner]

http://www.cbc.ca/news/business/stor...-takeover.html

Both take overs are official.

Interesting damage control on this, also with the revelation that going forward there will be "stricter rules" on foreign takeover in the future.

"Prime Minister Stephen Harper also announced new guidelines for evaluating proposed takeovers of Canadian companies by state-owned enterprises, including evaluating the possible influence of a foreign government in the enterprise."

[Slava]

Originally Posted by Fire

I would suspect most Canadian oil stocks will be up a solid amount on Monday. Longer term I would be wary of them. If the U.S can increase oil production like some think, the demand for Canada's oil (especially from the Oil Sands), will decrease significantly.

The scary part is that if the US can increase production like some people think, the price of oil will decrease by a significant amount.