After one board member dissented, Plains Resources Inc. said its stockholders approved a contested merger bid by a subsidiary of Vulcan Energy Corp. Plains and Vulcan expect to close the merger on Friday, with Plains stockholders receiving $17.25 in cash for each share of Plains common stock they own.
Vulcan reiterated on Sunday that its offer for Plains was its “best and final offer.” It sweetened the all-cash offer from $16.75 a share after Leucadia National offered a leveraged buyout, which was ultimately rejected by Plains’ board of directors.
“As you know, we believe the $17.25 per share price is a full and fair price for Plains Resources’ shares and represents a significant premium over the value of Plains Resources’ shares on a stand-alone basis, even after consummation of any feasible leveraged recapitalization,” a Vulcan Energy representative wrote to the board in a letter on Sunday.
Although the Plains board already approved the takeover, William Hitchcock, a board member, rejected Vulcan’s offer and said he would not support a deal worth less than $17.50 a share. Ramius Capital Group also said it believed the $17.25 price was inadequate and supported the continued operation of Plains as a stand-alone public company.
Houston-based Plains explores for and produces oil and natural gas in the United States. It also owns part of Plains All American Pipeline, a crude oil line.
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