June 24 (Reuters) - EXCO Resources’ (XCO.N) chief executive is considering a transaction that would allow him to buy only a part of the oil-and-gas explorer, after he struggled to raise funds to take the entire company private, the Wall Street Journal reported, citing people familiar with the matter.
Exco CEO Douglas Miller is studying a leveraged buyout with a “public stub,” allowing a portion of the company to be private while the remaining stake could still be publicly traded, the business daily reported.
In November, Miller teamed up with investors, including oilman T. Boone Pickens, and bid about $4.36 billion to take the company off the public markets. [ID:nSGE6A00GV]
The ‘public stub’ structure would require Miller to raise less money, while still gaining effective control of the company.
Miller is considering the move after Exco’s special committee put pressure on him to resolve his offer to take the company private, the paper said. (Reporting by Jochelle Mendonca in Bangalore; Editing by Gary Hill)