Stone Energy Corp. receives unsolicited buyout offer from New

New Orleans CityBusiness, May 26, 2006 by CityBusiness Staff Report

Independent petroleum producer Stone Energy Corp. said Friday it has received an unsolicited $2-billion buyout offer from Energy Partners Ltd. but its deal with Plains Exploration & Production Co. remains in effect.

New Orleans-based EPL proposed Thursday to buy Stone for a combination of cash and stock worth about $52 per share, or $1.4 billion, along with the assumption of $563 million of Stone debt.

Houston-based Plains said April 24 it would acquire Stone in a stock-for-stock transaction valued at $1.46 billion, along with the assumption of $483 million in debt.

EPL's offer represents a 26 percent premium above the Plains offer, which Energy Partners valued at $41.20 per share following the close of the markets on Wednesday.

Stone said Friday its board would consider the proposal. Plains has not commented on EPL's offer.

In late morning trading on the New York Stock Exchange, Stone shares were down 8 cents at $49.87 after rising $9.19, or 23 percent, to close at $49.95 Thursday.