Institutions in QEC hold 26%, 10% insiders and the rest retail I am guessing. Besides institutions aren't buying these undervalued stocks to sell for cheap. They want to maximize profits. When accredited investors (high networth and knowledge) go to institutions, they usually put down huge cash and buy into funds. It's up to the managers to make them money. Managers knows the value of what they are holding, and in regards to QEC, many have bought much much higher and so some are most likely averaging down.

QEC management would make recommendations to the investors after a bid, and if they didn't sell at $6, you can be sure they won't sell at $2.

You can't compare each takeover of different companies to each other...there are many different variables in place to say, if that one got taken over, then this one will as well.

In your case, I feel that the board is underselling the shareholders...if QEC were a company were insiders were doing huge selling during run ups, I'd be worried...but they have integrity and committment to this play and the value and I don't expect to be this way.

From our rights plan:

"The Rights Plan is designed both to encourage the fair and equal treatment of Questerre's shareholders in connection with any potential take-over bid and to ensure that Questerre's shareholders and its Board of Directors, in compliance with corporate and securities laws, have sufficient time to consider whether there are other options that would more effectively maximize shareholder value."

Also in takeover attempts, QEC has the right to solicit other bids...and I can tell you with all the shale's being bought up and huge companies in rivalry to get all they can...ie. Total, Exxon, Chevron, Shell etc...this will create some competition. If you have one company looking at a buy, then it'll get others to jump in as nobody offers a takeover for no reason.

Besides, most of these shale plays are offered bids when the play is usually proven up, as they would rather know the resource is there 110% and economic before shelling over billions...even if it's just one billion. 10 horizontals with 50% good results would shoot QEC imo to some big highs. If it trades at $5 at the time, a premium would be offered...say $6.50-7...then bidding amongst others imo...so that would create competition.

NA doesn't have many if any undiscovered shale gas plays...so it's slim pickens out there...and this is good for a bidding war.

That's my two cents on the issue.

Rocco