IS IT LOOKS LIKE SEASON OF AQUISION OR TAKEOVER BY DOW, BASF LYO OR
SINOPEC

Nova Chemicals Corp. (NCX), which has seen its shares climb roughly C
$5 in the past month, climbed again on Tuesday after Lyondell
Chemical
Co. (LYO) received a US$12.1-billion cash offer from its Dutch rival
Basell.
Shares of other petrochemical producers like Dow Chemical Co. (DOW),
also jumped on the transaction.

Private equity group Harbinger Capital’s disclosure that it has
acquired a 6% stake in Lydondell serves as a recognition of value in
the sector, Canaccord Adams analyst Bob Hastings said in a research
note. This could fuel takeover speculation, and boost share prices
across the sector.

He continues to rate Nova Chemical shares a “buy” with a US$50 price
target, which does reflect some potential for a takeover. However, he
thinks a buyout would come in at US$53 per share given recent
transactions, or higher if a bid is based on rising replacement
costs.

NCX 1-yr chart:

it may take this oppourtunity which is at the price less $10 per
share
offered price.