By OGJ editors
HOUSTON, Nov. 3 -- Exco Resources Inc. has received an offer from Douglas H. Miller, its chairman and chief executive officer, in which Miller said he is willing to buy all outstanding shares that he does not already own for $20.50/share.
In response, Exco’s board said it will establish a special committee to consider the proposal. Exco of Dallas has primarily natural gas production and gas assets in Texas, Louisiana, Pennsylvania, and West Virginia.
“There can be no assurance that any definitive offer will be made or accepted, that any agreement will be executed, or that any transaction will be consummated,” the board said in a news release. Miller proposed his offer on Oct. 29.
In a letter that Exco posted as a news release on its web site Nov. 1, Miller said he has discussed the buyout with Oaktree Capital Management LP and Ares Management LLC, both private-equity firms, and he said he also discussed the idea with businessman T. Boone Pickens.
“Each has expressed an interest in pursuing the transaction,” with him, Miller said. Miller and the senior management team own 15% of Exco shares. They took the company private in 2003 and made it public again in 2006. Pickens had a stake in Exco when it was a privately owned company.