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Friday, September 22, 2006

CNBC's Faber Said Houston Exploration (THX) Weakness Due to Rumor Jana is Selling

From 13D Tracker

CNBC commentator David Faber noted that yesterday's weakness in Houston Exploration Co. (NYSE: THX) (-9.85%) was due to rumors hedge fund Jana Partners has started selling its 14.8% stake in the company.

In June, the hedge fund sent a letter to Houston Exploration's Board proposing to purchase the Company for $62 per share. In response to the offer, Houston Exploration's board said the unsolicited offer from JANA Partners was not in the best interest of its shareholders.
On June 26, the Company announced that its Board of Directors has engaged Lehman Brothers Inc. to assist the Company in exploring a broad range of strategic alternatives.

In the most recent 13D filing, in late August, Jana noted that it raised its stake in Houston Exploration. So, if the rumors are true, this could indicate a complete reversal of Jana's view on the investment and the acquisition.

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