Exco Rebuffs Buyout Bid |
| Wall Street Journal - Jul 8, 2011 |
Exco Resources Inc. said it has ended a sale review, effectively rejecting Chairman and Chief Executive Doug Miller's roughly $4.4 billion bid to take the company private for $20.50 a share.
The company said the issuance of $300 million in convertible preferred stock envisioned in the bid could negatively affect the cash-and-stock mix received by Exco shareholders. Mr. Miller's proposal also failed to provide detailed financing commitments and terms under which the investors would govern Exco, the company said.
At the time of the offer, Mr. Miller said private-equity firms Oaktree Capital Management LP and Ares Management LLC, as well as billionaire oil tycoon T. Boone Pickens, had "expressed an interest" in pursuing the transaction with him. Mr. Miller noted that other funds would come from senior management at the company, a "significant portion" of Mr. Miller's own equity in the firm, and debt financing, if needed.
Read Full Article from Wall Street Journal
- Posted: 2011-07-08 13:58:16
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