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Friday, June 24, 2011

Exco CEO considering taking part of co private - WSJ, (NYSE: XCO)

EXCO Resources' (XCO.N) chief executive is considering a transaction that would allow him to purchase only a part of the oil-and-gas explorer, after he struggled to raise funds to take the entire company private, the Wall Street Journal reported, citing people familiar with the matter. Exco CEO Douglas Miller is studying a leveraged takeover with a "public stub," allowing a portion of the company to be private while the remaining stake could still be publicly traded, the business daily reported. In November, Miller teamed up with investors, including oilman T. Boone Pickens, and bid about $4.36 billion to take the company off the public markets. The 'public stub' structure would require Miller to raise less money, while still gaining effective control of the company. Miller is considering the move after Exco's special committee put pressure on him to resolve his offer to take the company private, the paper said.

EXCO Resources, Inc.(EXCO) is an independent oil and natural gas company engaged in the exploration, exploitation, development and production of onshore North American oil and natural gas properties. Shares of XCO fell by 1.73% or $-0.33/share to $18.78. In the past year, the shares have traded as low as $13.25 and as high as $21.04. On average, 2055810 shares of XCO exchange hands on a given day and today's volume is recorded at 2067510.