| International Buyout Fever Hits Energy Trusts | 10/22/09 |
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Harvest Energy Trust (HTE) shares are soaring after the company agreed to a multi-billion dollar buyout. South Korea’s state-owned National Oil Corp will buy Canada’s Harvest Energy Trust for $3.9 billion in the largest outbound cross-border oil and gas sector deal in Korean corporate history, according to Forbes.com. The deal is sending shares up by a third today, as Harvest agreed to a price of C$10 per unit plus the assumption of debt C$2.3 billion debt. As a whole, the Canadian Energy Trusts Index is mixed, although the Harvest deal is sending its average up by 3%. The sector is now ahead of the S&P 500 by 15% over the last month. Enterra Energy Trust (ENT), now the Index’s smallest component, and Penn West Energy Trust (PWE), its largest, are moving higher by 6% and 2.5% respectively. The former is now up by more than 20% over the last week. Precision Drilling Trust (PDS) is off by -2% today, while Baytex Energy Trust (BTE), Pengrowth Energy Trust (PGH), and Enerplus Resources (ERF) are slipping fractionally. The Canadian Energy Trusts Index is the top performing oil-tied Index over the last month, up by 16%. The sector is also a top pick among dividend investors, ranked in the top-10 tckerspy Indexes by yield. |
October 22nd, 2009 at 10:56 pm
Anybody who bought HTE at around $25 per share would be silly to vote yes on the sale to the Koreans. Why would Harvest management sell so cheap, the stock is surely worth more than $15?
October 23rd, 2009 at 12:25 am
Four economies around the world not affected by BANKING disaster,, spells CASH…
Canada
Australia
Singapore
Hong Kong
Natural Gas industry should be bought by hedge funds in Nov., some would say.. Therefore, Im looking for Natural Gas companies located in these locations. HTE is an just an example of what I am talking about and why I’m correct…
PWE is my favorite,,, which one is next to burst up 20%??? Time will only tell..
Safe trading to all…