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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: Big Dog who wrote (9976)5/23/2002 2:31:03 PM
From: kollmhn  Read Replies (1) of 206307
 
BD-
I understand perfectly.

I listened to the VTS CC and re-listened to the first statement a couple times.

Here's what was said almost word for word:
"While the Atlantis sale is moving forward, it is our view that the consolidation (VTS/PGO) needs to proceed. So, both companies are reviewing other options to insure that the merger company is adequately financed. However, there is no guarantee that such options will be available in the time frame contemplated."

That certainly sounds as if the is a willingness to continue on with the merger, were Atlantis not to close.

Additionally, during the question session, one annoyed stockholder requested a justification for the merger if it was going to leave the newco with 2 Billion in debt.
The response was essentially that "There are too many players (in the seismic arena). Ergo, we need fewer players to get margins up. Newco expects to save at least $35mm of overlapping expenses and FPSOs service a lot of the debt.
There will be consolidation even if this one doesn't go through. Seismic players have fallen on their swords far too long and consolidation is necessity in order to have a healthier industry."

There was no tone in either the opening remark nor, the answer to questions, that led me to believe the merger is anything except a GO. I think VTS wants it, and wants it bad, but I don't VTS will do something stupid just to get it.
My guess is that Atlantis will not close by month-end and maybe not even by June end or ever. That will necessitate finding something else to sell to reduce short term borrowings and preserve credit ratings.
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