This is a throwback post from June 25, 2002. We'll do a follow-up story, but by all accounts, this press release from BP Capital on June 25 was one reason for the spike in Penn Virginia's stock last week. Someone got ahold of the 13-year old press release and failed to realize that it was June 25 of 2012. Here's the press release:
Boone Pickens announced today a proposed acquisition of Penn Virginia Corporation (NYSE: PVA) on behalf of investment partnerships controlled by BP Capital that together own 7.6% of the common shares of PVA. Mr. Pickens said, "We look forward to working with management on this transaction to obtain this high value for PVA shareholders."
BP Capital has filed a 13D amendment with the Securities and Exchange Commission concurrently with the mailing of the letter regarding the proposed acquisition to the Board of Directors of PVA. Attached below is a copy of BP Capital's letter.
June 25, 2002
Board of Directors
Penn Virginia Corporation
c/o Mr. A. James Dearlove
President and Chief Executive Officer
One Radnor Corporate Center, Suite 200
Radnor, PA 19087
The BP Capital Energy Equity Funds, which together own approximately 7.6%
of Penn Virginia Corporation (PVA), are pleased to offer to acquire all of the
remaining outstanding shares of your company. We believe this represents the
best path to obtaining the highest value for your shareholders in the
We propose a negotiated transaction whereby the entire equity interest in
PVA would be acquired by us for $40 cash for each presently outstanding share.
This cash price reflects a 20% premium over recent trading levels. We believe
that this premium will be well received by the shareholders of PVA as a full
and fair price for their shares.
We have committed to provide the equity portion of the purchase price, and
we propose to finance the balance with a combination of senior credit
facilities secured by PVA's assets and a component of subordinated debt.
Based on our analysis of the current oil and gas lending environment and PVA's
public financial and reserve information, we are highly confident that the
necessary funds are available. Your financial advisors should easily verify
the viability of such a plan.
We contemplate that a definitive merger agreement would be negotiated and
entered into as soon as possible. It would contain representations,
warranties, covenants and conditions customary in similar transactions,
including compliance with applicable statutory, regulatory, charter and
We are prepared to meet with you and your advisors immediately to discuss
this proposal. We look forward to your early response.
BP Capital Energy Equity Fund, L.P.
BP Capital Energy Equity International Holdings I, L.P.
By: BP Capital Management, L.P.
By: /s/ Boone Pickens
Managing Director of the General Partner