Replies to post #839 on Alpine Management Systems, Inc.(fka ALPN)

[goodgreen]

RE: Buyout

I think it is highly likely that a big player will buy Colusa, primarily for the California presence and experience in feedstock management.

There are rumors that a major oil and gas player is planning a takeover of ethanol giant ADM. If it happens, this purchase may set the precedent for a consolidation phase in the biofuels industry, with special interest in cellulosic ethanol players. Many corn ethanol producers, oil and gas companies, and startups seem to be waiting in the wings looking to buy their way into the cellulosic ethanol market once they decide who the initial leaders are.

The logical candidates for a Colusa buyer include Pacific Ethanol, Xethanol, Virgin Fuels, Broin, Cargill, ICM, Cilion, Celunol, or Bluefire Ethanol. In turn these bigger fish will likely be targets for Chevron, BP, or Exxon once this ball really gets rolling.