Fir Tree announces support for Plains Exploration's acquisition of Pogo

By Devika Patel

Knoxville, Tenn., Oct. 9 - Plains Exploration & Production Co. and its investor Fir Tree Partners jointly announced that Fir Tree has agreed to support Plains Exploration's proposed acquisition of Pogo Producing Co.

Fir Tree, with a 9% stake in Plains Exploration, said it will vote its shares in support of the acquisition proposal, provided that Plains Exploration continues its commitment to implement its proven asset rationalization program combined with an ongoing significant share repurchase program and evaluate the necessary steps to achieve master limited partnership valuations by forming an MLP or using the MLP market to unlock value for shareholders.

As previously reported, on Sept. 7, Fir Tree said it would vote against the merger. The investor cited in particular turmoil in the capital markets and management's plan to form an MLP as reasons to vote against the deal.

"After a number of constructive conversations, we are pleased to have come to an amicable resolution regarding the Pogo acquisition and look forward to Plains Exploration's implementation of these post-acquisition measures," Fir Tree's Andrew Friedman said in a press release.

"We believe these measures are the most effective steps to creating value for shareholders. In light of Plains Exploration's commitments, we are happy to support the Pogo acquisition and plan to vote our shares in favor of it. Jim Flores and his management team have demonstrated a superb long-term record of value creation and we believe that the articulated strategy will help ensure that their superior record continues forward."

"We appreciate Fir Tree's support of the Pogo acquisition, which will enable PXP to continue its stated course of action of increasing shareholder value," Plains Exploration's James Flores said in the release.

Plains Exploration is a Houston independent oil and gas company.

Pogo, also based in Houston, is a natural gas production and exploration company.

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