Shares of Exco Resources, the Texas-based independent oil and natural gas driller, plunged 7.14% today on volume that was better than seven times the daily average on news that CEO Douglas Miller has struggled to obtain the financing necessary to take the entire company private for $4 billion.
Miller is reportedly considering taking a portion of Exco (XCO) private since he has not been able to procure the funds necessary to complete his privatization offer, which was announced last November. Two months later, Exco did confirm it would explore a possible sale.
Media reports Friday said Miller was being squeezed to give Exco's board a final offer and is now considering letting part of the company remain public so he does not have to raise as much money, according to the Associated Press. Miller offered $20.50 a share for Exco, well above Monday's closing price of $17.44.
Miller told Exco's board he planned to use a ''significant portion'' of his 3 percent stake to raise money and that he expected contributions from senior management and outside investors, and he planned to borrow, the AP reported.