Legacy Reserves no longer in talks with Apollo about going private

By Lisa Kerner

Charlotte, N.C., June 24 - Legacy Reserves LP said it will terminate discussions with Apollo Management VII, LP regarding Apollo's April 3 proposal letter following a recommendation from the conflicts committee of Legacy Reserves' board of directors.

The committee entered into negotiations with Apollo Management but was unable to reach an agreement, a company news release said.

The committee evaluated the proposal with the assistance of Tudor, Pickering, Holt & Co., LLC and Richards, Layton & Finger, PA.

As previously reported, Apollo proposed acquiring all of the outstanding units of Legacy Reserves for $14 in cash per unit, subject to adjustment.

Under the proposal, Legacy Reserves' management and employees would have remained in place following the transaction.

Cary D. Brown, Legacy Reserves chairman and chief executive officer, and his senior management team were expected to support the transaction and invest with Apollo in the acquisition of the partnership, according to Legacy Reserves.

In Wednesday's news release, Legacy Reserves said its management is expected to recommend that the board maintain the company's quarterly distribution rate of $0.52 per unit payable in mid-August.

Legacy Reserves is a Midland, Texas-based oil and natural gas limited partnership.

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