Houston Chronicle – Houston Exploration has rejected a hedge funds’ offer to buy the company for $62 per share.
In a written statement to Jana Partners, which owns 13 percent of the company’s shares, Chairman and CEO William Hargett said the company has hired Lehman Brothers Inc. to consider alternatives that could enhance shareholder value.
“We believe your proposal undervalues Houston Exploration’s portfolio of assets and opportunities,” he wrote.
Jana Partners has spent the several months hammering on the company to buy back more of its stock to boost the price or sell to a rival because Houston Exploration’s track record lags peer companies that explore for oil and natural gas.
According to Hargett, Lehman Brothers will look into several options for Houston Exploration including repurchasing more shares, paying a special dividend, entering into strategic partnerships or selling the company to a higher bidder than Jana Partners.
