ERHC Energy Inc (ERHE)

[Strategyone]

Realistically, the only way a company would privately try to purchase 40% at such a huge multiple to the market would be if they intended to go for the majority. The purchasing company would probably be trying to purchase more on the market or privately through the next largest stake holders. They could slowly purchase up to 4.99% without filing the sec forms for institutional ownership over 5%. Then they could grab as much as they could on the market the day or two prior to the private transaction being announced. I believe they have 3 days to report any buys or sells once they go beyond the 5% ownership.

Any way you look at it, the pps would get very close, very soon to the private deal. Further, I still think it would be a publically disclosed buyout offer rather than anything private but it would be pre-agreed upon by Offer to confirm that they would at least get those shares.

I also don't think any deal gets struck until oil is struck anyway.

Good luck all