Lukoil's plan for CHAR:
When I posted the below statement, I left out an important item. Lukoil will not begin to purchase CHAR shares until after the deal with Lukoil is made. Then they can start to accumulate. This should be about October 12th, unless something unexpected occurs with the Nelson aquistion. They will then begin to attempt to buy the outstanding 15M shares. Should not be hard with the panic selling going on. When many shares are obtained, then they make the fair offer for the remainder.
<<The plan is simple. Why pay $12.00 per share which is the evaluation based on reserves, when the market will sell you those shares for $5.00?
I expect them to quietly accumulate shares on the open market until they get a large amount of the retail shares. Then they will make the respectable fair offer of around $12.00 when only a few retail shares remain.
The dollar amount of this purchase is too small to work overtime screwing the little investior overtly. Furthermore, Conoco/Phillips is a minority partner with Lukoil in this aquistion, and cannot afford a class action suit being a US corporation.
Believe me, they enjoyed this panick selling today, and likely picked some up.
It's really not that complicated.
AI
