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Pioneer Natural Resources Offers to Buy Out Pioneer Southwest Energy Partners; Shares Soar 20%
By: MT Newswires
Pioneer Southwest Energy Partners L.P. ( PSE ) says that the company was approached by Pioneer Natural Resources Company ( PXD ) to acquire all of the outstanding, publicly held Pioneer Southwest common units Pioneer does not already own through a stock-for-unit exchange.
PXD is proposing consideration of 0.2234 of a share of its common stock for each outstanding publicly held PSE common unit. The proposed transaction would be structured as a merger of Pioneer Southwest with a wholly owned subsidiary of Pioneer.
The proposal was referred to PSE's conflicts committee, which will study, review and evaluate the proposal. Pioneer owns 100% percent of the general partner of Pioneer Southwest and owns approximately 52.4% of the 35,713,700 outstanding common units of Pioneer Southwest.
Shares of PSE are up almost 20% to $31.25 in the after-hours session, while PXD is down 0.21% to $137.50.