Vulcan Capital buying Plains Resources

Feb. 20, 2004
Plains Resources Inc., Houston, said it agreed to be acquired by a private equity company, Vulcan Capital, which is controlled by Microsoft Corp. co-founder Paul G. Allen's Vulcan Inc., Seattle.

By OGJ editors
HOUSTON, Feb. 20 -- Plains Resources Inc., Houston, said it agreed to be acquired by a private equity company, Vulcan Capital, which is controlled by Microsoft Corp. co-founder Paul G. Allen's Vulcan Inc., Seattle.

In November, Vulcan Capital proposed a buyout at $14.25 a share, which Plains Resources rejected. In the latest offer, Vulcan Capital agreed to buy Plains Resources for $16.75 a share.

A Plains Resources spokesman was not immediately available to comment on the deal.

Plains Resources' Chairman James C. Flores and John T. Raymond, CEO and president, are partners with Vulcan Capital in the transaction. Vulcan Capital, Flores, and Raymond form the Vulcan Group. Plains Resources' board has approved the latest offer and recommended that shareholders approve it.

The merger agreement remains subject to customary closing conditions. Plains Resources plans to hold a special shareholders meeting as soon as practicable. Closing is expected in the second quarter.

As a result of the merger, Plains Resources will become a privately held company. Plains Exploration & Production Co. was spun off from Plains Resources in late 2002 (OGJ Online, June 4, 2003).