* Shares down 4 pct
* Committee rejects CEO's lowered offer
* Revised deal was cash and equity
(Adds byline, company background)
By Anna Driver
HOUSTON, July 8 A special committee of the EXCO
Resources Inc (XCO.N) board said on Friday it ended a review of
strategic alternatives for the U.S. oil and natural gas company
because no deal was struck.
The committee's review included a proposal from EXCO Chief
Executive Officer Douglas Miller and Texas oilman T. Boone
Pickens to take the company private. Miller initially valued
EXCO at $20.50 per share in a proposal made in November, but
lowered the bid earlier this week. [ID:nN1E7661BN]
"We conducted a thorough review of strategic alternatives
available to the company," a committee statement said. "As that
process did not result in a transaction the Special Committee
determined is in the best interests of the company and all of
its shareholders, the special committee has decided to
terminate the process."
A representative of the Dallas company could not
immediately be reached for comment on the committee's
The bulk of EXCO's output is natural gas, a fuel with a
price burdened by massive supply. Quarterly natural gas prices
at benchmark Henry Hub have not averaged above $6 per thousand
cubic feet in over 2 years.
EXCO has oil and natural gas assets in the Haynesville
shale in East Texas and North Louisiana, and the Marcellus and
Huron shales in Appalachia and the Permian Basin.
Miller's latest proposal -- restructured because he was
having difficulty raising financing -- involved a mix of cash
Barclays Capital Inc and Evercore Partners served as
financial advisers to the special committee.
Shares of EXCO were down 4.0 percent at $15.98 in afternoon
New York Stock Exchange trading.
(Reporting by Anna Driver; Editing by Lisa Von Ahn and Gerald