Merger

[dan_s]

A week after the death of its founder, Contango Oil & Gas Co. (NYSE MKT: MCF) said it will merge with Crimson Exploration Inc. (NasdaqGM: CXPO) in a $400 million all-stock transaction.

Crimson stockholders will receive 0.08288 shares of Contango common stock for each Crimson share. Based on Contango’s April 29 closing stock price, the deal represents a premium of 8 percent to the most recent closing price of Crimson common stock.

The deal, worth $390 million, includes $244 million of Crimson's long-term debt. The combined company will have estimated proven reserves worth about $935 million, according to a statement.

The two Houston-based companies said the combined corporate headquarters of the new company will be in Houston.

have already signed a merger agreement. Crimson will become a wholly owned subsidiary of Contango.

[sansonetx]

I have owned Crimson for a long time.This merger does not seem to be an arm lengths deal.It seems very one sided as the Crimson guys will be mgmt.It still has to be approved..but there will be lawsuit imo.Any ideas how to play is development to max return?? The conference call sounded weak.

[dan_s]

I don't follow either company closely but maybe some other members can help you. Seems like there is always a lawsuit related to these merger deals but the companies know that, so they cover their bases (assuming they are smart).