To discourage a hostile takeover, Houston Exploration Co.’s board of directors has adopted a shareholder rights plan that may be exercised if any group — with the exception of 24% shareholder KeySpan Corp. — acquires or announces a tender offer for 10% or more of the company’s outstanding common stock. The “poison pill” plan was not in response to any specific effort to acquire the independent producer, it said in a statement. Rather, it is designed to “assure that all stockholders of the company receive fair and equal treatment in the event of any proposed takeover of the company and to guard against two-tier or partial tender offers, open market accumulations and other tactics designed to gain control of the company without paying all stockholders a fair price.” CEO William G. Hargett said the plan was adopted “in light of recent acquisition activity in our sector, continuing volatility in commodity prices, and the prospect of KeySpan divesting their remaining interest in our company. Given the cyclical nature of our sector these plans are very common and have been adopted by virtually all of our peers, allowing the board of directors to ensure equal and fair treatment of all stockholders in an acquisition context.” In May, KeySpan successfully completed a $449 million exchange transaction with Houston Exploration that reduced its ownership from 55% to 24% (see NGI, May 31).
Exercised
Articles from Exercised
Houston Exploration Adopts Plan to Prevent Hostile Takeover
To discourage a hostile takeover, Houston Exploration Co.’s board of directors on Thursday adopted a shareholder rights plan that may be exercised if any group — with the exception of 24% shareholder KeySpan Corp. — acquires or announces a tender offer for 10% or more of the company’s outstanding common stock.
Devon Plans to Buy Exchangeable Shares of Northstar Energy
Devon Energy Corp. said Friday that it exercised its right to acquire the remaining exchangeable shares of its Canadian unit Northstar Energy Corp., which it merged with in 1998.
Gaz Metro Exercises Partnership Rights, Increases Stake in PNGTS
Gaz Metropolitan & Co. has exercised its rights under a partnership agreement and intends to increase its ownership interest in Portland Natural Gas Transmission System (PNGTS) to 38.3% from 26.9% through a $21.6 million purchase of El Paso Corp.’s interest in the pipeline.
Gaz Metro Exercises Partnership Rights, Increases Stake in PNGTS
Gaz Metropolitan & Co. has exercised its rights under a partnership agreement and intends to increase its ownership interest in Portland Natural Gas Transmission System (PNGTS) to 38.3% from 26.9% through a $21.6 million purchase of El Paso Corp.’s interest in the pipeline.
TransCanada Buys DTE’s Stake in Portland Natural Gas for $47M
TransCanada Corp has exercised a right to increase by more than 10% its ownership interest in New England’s Portland Natural Gas Transmission System to 43.42%, purchasing a portion of DTE East Coast Pipeline Co.’s interest in PNGTS for US$47.1 million. The price includes assumption of US$27.8 million in debt.
TransCanada Buys DTE’s Stake in Portland Natural Gas for $47M
TransCanada Corp has exercised a right to increase by more than 10% its ownership interest in New England’s Portland Natural Gas Transmission System to 43.42%, purchasing a portion of DTE East Coast Pipeline Co.’s interest in PNGTS for US$47.1 million. The price includes assumption of US$27.8 million in debt.
FERC Staff Finds Market Power Concerns in El Paso Case
El Paso Natural Gas and El Paso Merchant Energy probably exercised market power in the Southern California gas market and drove up gas prices over the past year when pipeline capacity constraints existed, FERC staff concluded last week in testimony before Chief Administrative Law Judge Curtis Wagner Jr.
FERC Staff Finds Market Power Concerns in El Paso Case
El Paso Natural Gas and El Paso Merchant Energy probably exercised market power in the Southern California gas market and drove up gas prices over the past year when pipeline capacity constraints existed, FERC staff concluded last week in testimony before Chief Administrative Law Judge Curtis Wagner Jr.
Westcoast Sells NGX to Sweden’s OM
Westcoast Energy exercised its option to sell its remaining 49%interest in NGX Canada (NGX), an electronic gas trading exchange,to OM Gruppen of Stockholm, Sweden. The deal is likely to lead to asignificant upgrade of the Canadian trading system possibly to acontinental system with multiple commodity offerings, according toits new owner.
