With the stock price just over 4 bucks how vulnerable is CGG to takeover right now??
I know there is a lot debt but surely there must be value somewhere (?)
4 replies (most recent on top)
I was educated "by example". The managerial should had drop the salaries when we hit the ground. But no, we had more managers, more salaries increase (not for the hard workers) and more "managers" with no time writting. We are doom. But what is that dead may never die.
Realistically as a company, I cannot see them being brought out or taken over. What would a buyer gain from doing so? Sure they will have employee’s but let's face it, most of the experienced ones have either been made redundant or even just walked out. The majority of what’s left is a mess and of low value. If CGG survive – and that’s a big if, they won’t be a top player in their industry, they will become a cheap budget seismic company. As for the CEO, he’s not worth the money they pay him and should have been sacked a long time ago. Look at the share price; it was not that long ago they were hitting penny shares and to help boost the price they divided them by 32. Now look at the price, they are heading back to penny shares.
Who the hell is going to lend them 500m.......?
Sadly not 3bn worth of value, hence the need to completely re-finance - that might mean selling bits off. They have 315m cash (as of end June) and plan to raise 500. So thats 815 in total (but will not see the 500 until end of year if successful). At the alarming cash burn rate even the re-financing plan does not look robust enough even if they get it. It is not looking good - but no buyers will be interested at today's share price - far too much at stake