Energy Partners Ltd., New Orleans, (NYSE: EPL) has rejected the unsolicited offer from ATS Inc., a Covington, La.-based subsidiary of Woodside Petroleum Ltd., Perth, Australia, (Australia: WPL) to acquire EPL for $23 per share in a deal valued at US$883.2 million.
EPL says the offer is inadequate and recommends stockholders not tender their shares. EPL received opinions from Petrie Parkman & Co Inc., Evercore Group LLC and Banc of America Securities LLC.
EPL has interests in 38 producing fields and five fields under development on the Gulf of Mexico shelf and onshore the Gulf Coast. It has estimated proved reserves of approximately 166.9 billion cu. ft. of gas and 31.5 million bbl. of oil. The Woodside offer had required EPL shareholders to reject a merger plan with Stone Energy Corp., Lafayette, La. (NYSE: SGY).
Energy Partners chairman and chief executive Richard A. Bachmann says, "Our board is always looking to maximize stockholder value and believes that the offer is opportunistic and significantly undervalues EPL. Given our solid track record of operational success and the strong potential of our attractive Gulf of Mexico assets, we believe that ATS' offer is clearly not in the best interests of EPL stockholders and therefore urge them not to tender their shares."
EPL had filed to ask a Delaware court to rule on if it could consider the unsolicited offer from Woodside, since the Woodside offer required that EPL walk away from its plan to buy Stone.
"An actual and justiciable legal controversy exists as to whether...the merger agreement [with Stone] prohibits Energy Partners from exploring strategic alternatives, including but not limited to discussing unsolicited acquisition proposals with third parties," EPL wrote in its petition. "...Energy Partners lacks an adequate remedy at law."
Energy Resource Technology Inc., a subsidiary of Helix Energy Solutions, Houston, (NYSE: HLX) has acquired Typhoon Field (Green Canyon blocks 236/237), Boris Field (Green Canyon 282) and Little Burn Field (Green Canyon 238) in the deepwater Gulf of Mexico from Chevron U.S.A. Inc., BHP Billiton and Noble Energy Inc., Houston, for an undisclosed amount.
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