Big Dog's Boom Boom Room Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Todd N	10/19/2005 7:59:56 PM
	of 206326

ECA bid of $65 rejected, possible $70-75 I found this while surfing for ECA buyout news: globeinvestor.com Takeover talk boosts stock Wednesday, October 19, 2005 Globe and Mail Update DAVE EBNER AND ERIC REGULY AND ANDREW WILLIS — EnCana Corp. stock added $4.7-billion in market capitalization on Wednesday as its shares surged 9.8 per cent higher, powered by a broad turnaround in the energy sector and strong rumours of a potential Royal Dutch Shell PLC takeover bid. "EnCana's led the charge. It's obviously takeover speculation," said Chris Theal, co-director of research at brokerage Tristone Capital Inc. in Calgary. "That is the predominant discussion on the desk right now." Stock of EnCana closed at $61.65 on the Toronto Stock Exchange, up $5.49 or 9.8 per cent, and on the New York Stock Exchange it rose $4.67 (U.S.) to $52.56. The TSX energy index rose 3.5 per cent. From EnCana's low yesterday to the close, the stock rose 14.5 per cent. One source said Royal Dutch offered EnCana $65 (U.S.) a share but was rejected by Canada's largest natural gas and oil producer rejected it as insufficient. Another source said the bid was $62. Sources say Royal Dutch is working on another bid for more than $70 a share. An EnCana spokesman said the company doesn't comment on rumours. One EnCana board member contacted had no comment. A $70-plus bid would be considered aggressive financially if based solely on EnCana's proved reserves but the company believes it can increase reserves by more than 150 per cent within five years. "I think you can make a real strong case that nothing gets by the board unless it's $70 to $75 a share," Mr. Theal said. Politics could be a factor. An investment banker who knows EnCana well said he doubted that the federal government would take a hands-off approach to a foreign bid for EnCana. "Ottawa would be very concerned about losing a premium company," the banker said. © The Globe and Mail

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next