Friday, December 19, 2014

Forest and Sabine Close "Merger"

I "quotationalizeify" the word merger in the title because, as we've previously noted, it's more a case of Sabine Oil and Gas buying Forest Oil and assuming its public listing.  In any case, the deal closed yesterday, but complications arose when Forest got delisted by the NYSE.  Unfortunately, the deal couldn't close before the slide in the oil and gas market got the better of Forest's stock.  While the terms of the deal didn't seem to change a whole lot, they had to arrange some new financing.  The stock currently is trading on the OTC Bulletin Board with the expectation that things will change and it will meet the NYSE listing requirements, but right now you can get two shares for less than the cost of a first class stamp.

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