By OGJ editors
HOUSTON, Oct. 12 -- Energy Partners Ltd. (EPL) of New Orleans has terminated plans to buy Stone Energy Corp., Lafayette, La., and has agreed to pay Stone $8 million in exchange for Stone's agreeing to release all claims against EPL.
The sum represents a $17.6 million discount from the fee EPL would have been obligated to pay Stone under certain circumstances.
In September Woodside Petroleum Ltd.'s wholly owned subsidiary ATS Inc. began an $880 million tender offer for EPL in a takeover bid.
The offer from ATS, Covington, La., is conditional upon EPL shareholders' voting down the Stone transaction. EPL has proposed to buy Stone for $2 billion, which includes $1.43 billion in a cash-stock offer, plus $563 million in debt (OGJ, June 12, 2006, p. 34).
In an Oct. 12 statement, however, EPL said its board has decided to explore strategic alternatives, and it recommends that EPL stockholders reject the unsolicited tender offer of ATS, saying the offer is "inadequate and not in the best interests of EPL's stockholders."
