HOUSTON — Wagner & Brown's unsolicited offer to buy Panhandle Eastern for $50 a share, or $2.25 billion, was rejected as inadequate by Panhandle's board of directors on Wednesday.
The bid by Wagner & Brown, an energy concern based in Midland, Tex., and controlled by Cyril Wagner Jr. and Jack E. Brown, was disclosed by Panhandle on June 30.
A spokesman for Wagner & Brown, Grant Billingsley, said the company had no comment in response to the action by Panhandle's board. Wagner & Brown's offer called for each of Panhandle's 44.9 million common shares outstanding to be exchanged for $30 cash plus preferred stock with a current market value of $20.
Panhandle Eastern, a diversified energy concern, is considered a relatively attractive target because of its Anadarko Petroleum subsidiary, which holds a major stake in the rich Hugoton natural gas field centered in southwestern Kansas.