Gigwoof: The $2 is pure speculation. Barry Morgan put out an article a few weeks ago stating that ERHE's board had met to determine whether or not they would even consider an offer which was being proposed by a 'mid-tier' U.S. oil company to acquire a controlling interest, and they decided in the affirmative. The offer is not official, and was denied by erhe's amiable secretary, but the birdies are chirping that it is real. For it to be official, there will have to be a filing, so until then it is all speculation and rumor.
What makes the most sense to me is that there are some of the large shareholders like Nugent who need cash due to unwise financial involvements elsewhere who are willing to part with a substantial portion of their shares rather than waiting longer. It would be very hard for them to unload tens of millions of shares without depressing the price considerably. Posters are anticipating the offer to be between $1.50 and $4.00, with $2.00 being the number thrown around most often.
I personally expect a tender offer on the low side some time before psc's are finalized. I can't say that I attribute the current sp to the machinations of the prospective buyer, but I do attribute it to the likelihood that an offer will be made. I think the most likely culprit is the investment house that was undoubtedly consulted about putting the package together, and they are loading up on shares for personal gain, as well as getting an "attaboy" for getting retailers in the mood to part with their shares at a lower offer price.
I see the offer as very positive, regardless of the price (unless it's below a dollar). The simple fact that a major company would make the offer validates erhe as not being a nigerian scam and having valuable assets. The buying company would also be expecting a return on their shares, so I'd expect to see a large multiple on the offer price within a reasonable time period, so I will be holding the vast majority of my shares. Hope this helps.
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