Dramatically reversing the trend set earlier in the day, buyers gobbled up more than 200,000 shares of ERHC Energy since word of a $2 buyout offer for 51 percent of the company from Pioneer Natural Resources moved on this blog.
Sellers gave away just 90,000 shares in that time. Some 75,000 shares were recorded as Buys by ADVFN between 2:54 and 2:59, in lots of 20,000, 35,000, 5,000 and 15,000.
The 3:1 Buy momentum is a dramatic sign that word of the buyout is coming from credible sources.
Update, 3:34pm EDT: An oil platform offshore India is burning after colliding with a drilling rig, and some 300 workers are said to be trapped.
Some 381,000 shares have traded since 2:12:12pm EDT, and in the 41 trades since then buyers have taken 381,000 shares while sellers gave up only 36,970.
A poster on Investor's Hub has questioned my suggestion that all the shares could be purchased from the Nigerian owners alone. If Pioneer reached a deal with Sir Emeka Offor and the First Atlantic Band of Nigeria PLC, it could purchase only their shares in one big package and attain the 51 percent controlling interest.
Unfortunately, this has happened to companies where I was an investor in the past, and I was shocked not to be able to participate in the largesse.
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