EXCO gets acquisition proposal that includes $300 million convertibles

By Angela McDaniels

Tacoma, Wash., July 8 - EXCO Resources, Inc. received on Wednesday a proposal from chairman and chief executive officer Douglas Miller to acquire a 81% stake in the company. The proposed financing includes $300 million of perpetual convertible preferred stock.

On Friday, the company's board of directors finished its review of strategic alternatives without entering into any deals. The special committee of the board began the review in January.

"As that process did not result in a transaction the special committee determined is in the best interests of the company and all of its shareholders, the special committee has decided to terminate the process," the committee said in a company news release.

In November, Miller offered to acquire all outstanding EXCO shares for $20.50 per share in cash. In the latest proposal, Miller and a group of shareholders offered to acquire a roughly 81% stake at a price of $18.50 per share, which would be paid in a mix of cash and equity in post-transaction EXCO.

Miller indicated he believed he would likely be able to finance the transaction, EXCO said, but he did not provide any financing commitments.

EXCO is an oil and natural gas company based in Dallas.

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