EPL downgraded at multiple firms which see no bids competing with EXXI

EPL Oil & Gas (EPL +0.7%) is downgraded by at least a half-dozen sellside firms which say investors should not expect competing bids for Energy XXI's $39/share offer.

Stifel, for example, cuts shares to Hold from Buy, seeing no meaningful probability for competing bids after EXXI's "full and fair" offer; the deal is friendly, it contains a high cash component (65%), a breakup fee is involved, and there is a limited number of buyers for shelf production.

The firm also cites a fairly narrow arb spread (1.1% to the cash/stock offer) and risk of additional downside to EXXI stock in the near-term given the acquisition metrics.

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