CHAR
Company officers remain in place. I believe the news is exactly what was expected. I don't think the Lukoil Group will wait a long time to make a buyout. Supposedly, Nelson was priced at 25% above the six month average price. That six month average price is just over $4.40 right now, which would result in a $5.50 offer on the same lowball terms. If they wait until January, and the average price of CHAR averges $5.00 for the next month, the average six-month price will be approximately $4.84, and the 25% premium would result in an approximate $6.05 low-ball offer. Since the average price in July was approx. $3.50, waiting even longer could result in an even higher price.
Remember, in late January or early February, CHAR earnings and reserve updates will become available. I don't think they will wait that long. In any case, I think CHAR is a pretty safe hold with upside potential from here.
Tmcal
