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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (43225)	7/7/2011 2:58:08 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78682

XCO. Thanks for the update. If the stock goes out at $18.50 or equivalent, it'll be a losing proposition for me. I'll continue to hold, because that would still be better than the current $16.72 trading price.

To: E_K_S who wrote (43225)	7/8/2011 12:11:42 PM
From: E_K_S	Read Replies (2) \| Respond to of 78682

Looks like deal is off - Not in the best interests of the shareholders. Re: EXCO Resources Inc. (XCO) From Briefing.com: 11:47AM Exco Resources terminates strategic review process; special committee determined there were no proposals in the best interest of the co/all shareholders (XCO) 15.89 -0.78 : After consultation with its independent financial and legal advisors, the Special Committee determined that its review of strategic alternatives, including its consideration of Mr. Miller's proposals, has not resulted in any firm proposal or any other proposal that the Special Committee determined was in the best interests of the co and all of its shareholders. In addition to Mr. Miller's original proposal of $20.50 per share in cash, on July 6, 2011, CEO and Chairman Miller submitted a written proposal for a possible transaction in which he and certain indicated financing sources (who collectively hold a significant minority percentage of EXCO's outstanding common shares) would acquire by merger an ~81% interest in EXCO's common equity at a stated purchase price of $18.50 per share, with each EXCO shareholder receiving $13.52 per share (or ~73% of the purchase price) in cash as well as equity in the post-transaction EXCO with a stated value of $4.98 per share (or ~27% of the purchase price), subject to rights of election and pro ration. As part of the financing for the proposed transaction, Mr. Miller's proposal contemplated the issuance of $300 mln of perpetual convertible preferred stock which, if not successfully issued, would result in an adjustment to the cash and stock mix received by EXCO shareholders. Mr. Miller indicated he believed he would likely be able to finance the transaction but he did not provide any financing commitments, nor did his proposal outline the terms by which his potential investors would govern EXCO and what rights and protections would be offered to the remaining publicly held interest in EXCO. "We conducted a thorough review of strategic alternatives available to the co. As that process did not result in a transaction the Special Committee determined is in the best interests of the co and all of its shareholders, the Special Committee has decided to terminate the process." ------------------------------------------------------------------------------------------------------------------------ I still believe there is significant value in the company especially if shares can be had in the $14.00/share area. Perhaps another buyer will step up with a better deal. EKS