A birdie told me I could share this last October, but I've just refrained from doing so; but in light of sfreed's comments, I thought I'd throw this in the mix.
"SEO is ready to sell and Addax is ready to buy, except that Addax only wants to buy ERHC (cash and shares) when the investigations are closed/settled. (BTW Addax wanting to buy ERHC has always been the case even when the deals were not closed in 2005, JCG told me over a dinner in 2005). IMHO Addax is the only logical buyer that would reap synergies from an acquisition. I assume you know how, if not let me know.
Although DOJ/FBI/SEC do not have much except one big last issue (will not tell but impact can only be a fine), they are not going to let loose until all Nigerians are out (i.o leave ERHC). So it is a kind of catch 22. As it looks now you will have to wait for the first drilling results, but that Addax eventually will acquire ERHC is a given to me.
SEO knows this so you wonder why does not force the others to leave and get done with it. This makes me wonder whether he really controls(led) the appointment of the others, or whether there are other people behind him. I think so or may be I know so (LOL)"
End of birdie.
I believe the synergies spoken of refer to return on investment for Addax. They're already obligated to fully fund erhe's portion, yet they won't be able to take credit for erhe's portion on their books. Essentially, they are motivated to make an arrangement that will allow them to put erhe's percentages on their side of the ledger, and since they've already been hooked with the e&p costs, they can use that as justification for a much higher acquisition price than anyone else could.
