Monday, December 13, 2010

A Partner or a Fly in the Ointment for EXCO

News came this morning that billionaire Wilbur Ross has accumulated 15.9 million shares, or a 7.5% stake, in EXCO Resources through various entities he controls.  He made the vast majority of the purchases in November and December at prices +/- $18.50 per share.

This comes amid management's attempted buyout of the company.  Ross says that his actions are the result of his belief that natural gas prices will rise, but given the timing, one wonders if a little merger arbitrage isn't on his mind as well.

How this impacts the proposed buyout is unknown at this point.

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