Unocal Offers to Buy Rest of Pure Resources
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Unocal Corp. offered to buy the 35% of Pure Resources Inc. that it doesn’t own for about $440 million in stock to expand operations in the U.S.
Pure Resources was formed in May 2000 when Unocal spun off its oil and natural-gas exploration operations in Texas and New Mexico and merged them with Titan Exploration Inc. The Midland, Texas-based company pumped the equivalent of 357.3 million cubic feet of natural gas last year.
El Segundo-based Unocal said it would exchange 0.6527 share for each Pure Resources share.
Based on Tuesday’s closing prices, the offer values Pure Resources at a 27% premium. Unocal closed at $34.09, down 69 cents, while Pure closed at $17.52, down 28 cents, both on the New York Stock Exchange.
The deal was announced after trading ended.
Unocal said it wants sole ownership of Pure Resources’ oil and gas assets concentrated in the Permian Basin of west Texas, the San Juan Basin in New Mexico, the Gulf of Mexico and Gulf Coast to increase cash flow and cut costs, spokesman Barry Lane said.
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