Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (19386)	3/3/2003 1:34:14 AM
From: energyplay	Read Replies (1) \| Respond to of 206326

DVN - OEI deal is for STOCK, not cash, so OEI share holders are still in the game, no taxable event, with a better known and larger cap name. Also, OEI needs cash to develop it opportunites. DVN has more debt, but heavy North America natural gas means it will generate LOTs of cash the next two years. But North America opportunities are realively small. OEI avoids the borrowing cost and will tend to get a slightly higher multiple as part of DVN. This compensates for the slightly lower price. There will some up and down movement in the stock price as people who own both re-adjust their portfolios.