A private equity firm controlled by Microsoft Corp. co-founder Paul Allen will most likely be buying Houston-based midstream operator Plains Resources Inc. after two of its major investor groups agreed to back the firm’s bid.

In mid-February, Plains Resources’ board agreed to be bought by Allen’s Vulcan Capital for $16.75 a share cash, after first rejecting a $14.25 bid last November. Plains Resources’ chairman James C. Flores and CEO John T. Raymond are Vulcan’s partners on the transaction, and want to take the company private.

The move also would stall another takeover attempt by Pershing Square LP and Leucadia National Corp. Plains Resources set up a special committee in February to consider offers after Pershing and Leucadia offered shareholders about $3 in cash and new securities.

On Monday, Kayne Anderson Capital Advisors LP and EnCap Investments LP said they would vote their Plains Resources’ stake in favor of the all-cash bid. Kayne owns 7.4% of the company while EnCap owns 4.9%. Under terms of the deal, Vulcan would pay $16.75 a share in cash to all shareholders except for Flores and Raymond.

Plains Resources has a 24% equity ownership in Plains All American Pipeline LP. The pipeline’s operations are concentrated in Texas, Oklahoma, California and Louisiana and in the Canadian provinces of Alberta and Saskatchewan. Plains Resources also participates in the upstream activities of acquiring, exploiting, developing, exploring for and producing oil through its wholly owned subsidiary, Calumet Florida LLC, which has producing properties in the Sunniland Trend in south Florida.

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