Exco Resources, the Texas-based natural gas producer, is looking for alternatives to CEO's Douglas Miller's $4.36 billion takeover offer and has adopted a shareholder rights plan that would put new requirements on entities that try to gain more than 10 percent of its shares, Bloomberg News reported.
Exco's (XCO) concluded upon review of Miller's offer that it would be in the best interests of the company to explore strategic alternatives. Miller made his offer, which values the company at $20.50 per share, on Oct. 29. The shares closed at $19.41 today.
The shareholder rights plan is expected to be in place for a year. Exco's proved gas reserves rose 56 percent to the equivalent of 1.5 trillion cubic feet from 959 billion cubic feet, mostly because of an increase in Haynesville shale production, Bloomberg reported.
In announcing it would review other offers, Exco did not formally reject Miller's offer. If Miller is successful in acquiring the company, he would then take it private.