Q: what do you think of the deal on the table. Are shareholders getting fair value?
5i Research Answer:
We do not think it is a 'great' deal, though with a big break fee the chance of a competing bid is likely fairly low (still above 0%, though). We think we would have preferred letting the Simpson Oil board (they were about to win control) 'clean up' things and improve profitability before an eventual sale. Sunoco has been interested in the company for some time, and more or less came in a swooped it up while it was vulnerable. The current board we think should have done a full sales process. Note the stock was near $50 five years ago, so $38 to $40 is hardly impressive for a premium.