archives
Another Smart Company!
Big news today was the hostile takeover bid for UTS by Total. In additions to Petrobras and Shell here is another company that is actually doing something smart (as opposed to slashing budgets!).
There have been $27.7-billion worth of transactions in this sector over the past four years. On average, properties have changed hands at $1.34 for each potential barrel of reserves that soak the sand.
Total's offer for UTS values the target company at just 14 cents for each barrel of reserves, or 9 per cent of the average price that previous buyers paid to gain control of oil sands properties. That's what a credit crunch, environmental uncertainty and plunging crude prices have done for the energy companies.
Posted by Mike – January 28, 2009 – 17:41