Exco Resources CEO Douglas Miller trimmed his takeover offer for the natural gas producer by 9.8% to $4 billion from $4.4 billion while adding a stock element to the offer, Bloomberg News reported, citing three people with knowledge of the matter. Last month, there was speculation that Miller was struggling to obtain financing for his offer to take Exco private.
In late June, Miller was reportedly considering only taking a portion of Texas-based Exco private. A revised offer submitted to the company last week is valued at $18.50 a share, with a majority of the price in cash and the rest in shares, Bloomberg reported. That is below the $20.50 a share Miller offered in November.
Exco (XCO) could reach a decision within days as board committee is currently reviewing Miller's latest offer. Shares of Exco plunged 4.42% today on volume that was more than five times the daily average after the news broke.
If Miller is successful in this buyout attempt, it will be the third time he has purchased Exco. He purchased 51% of the company in 1997 and then took the company private in 2003 with backing from Cerberus Capital Management only to reintroduce the firm as a publicly traded entity again in 2006, according to Bloomberg.