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NEGI - American Real Estate plans to sell NEG unit for $1.5 bln
Thu Sep 7, 2006 5:38pm ET

UPDATE 1-Icahn's AREP says plans to sell NEG unit for $1.5 bln
American Real Estate plans to sell NEG unit for $1.5 bln
American Real Estate Partners 2nd-qtr profit soars
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Sept 7 (Reuters) - American Real Estate Partners LP (ACP.N: Quote, Profile, Research) on Thursday said it signed a letter of intent to sell its NEG Oil & Gas LLC unit to Riata Energy Inc. for about $1.52 billion in cash and stock.

The deal, which gives Riata a 70-day exclusive period to acquire NEG, will see Riata issuing 12.8 million shares of its common stock at $19 per share to AREP, while the remainder of the price is paid in cash, AREP said in a statement.

Riata would also assume up to $300 million of debt of NEG Oil & Gas and get $50 million in cash, it said. (Reporting by Anthony Kurian in Bangalore)