Tallahassee, FL 1/17/12 (StreetBeat) -- Venoco Inc. (NYSE: VQ), the second-largest landholder in California’s Monterey oil-shale formation, surged 50 percent after it agreed to be purchased by its chief executive officer.The shares rose to $11.50 at 8:54 a.m., before the start of regular trading on U.S. markets. The Denver-based oil and natural-gas producer yesterday agreed to a $12.50-a-share offer by Chairman and CEO Timothy Marquez, owner of 50.3 percent of its shares. The cash bid represents a premium of 63 percent to the Jan. 13 close and values the entire company at $770 million.
The offer is unchanged from Marquez’s August bid, which prompted a shareholder lawsuit. A special committee formed by the board investigated alternatives and said yesterday the offer was “in the best interests” of Venoco’s shareholders.
Bank of America Corp.’s Merrill Lynch and Strategic Energy Advisors LLC are financial advisers to the board’s special committee and Squire Sanders is the legal adviser. The transaction is subject to regulatory and shareholder approvals.
BMO Capital Markets and Wachtell, Lipton, Rosen & Katz advised Marquez.
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