San Antonio oil refiner Tesoro Corp. said Monday it would review an
unsolicited offer by Kirk Kerkorian's Tracinda Corp. to buy a minority stake
in the company for $1.4 billion and urged stockholders not to take any action.
Tesoro will advise shareholders within 10 days about its view on the offer
after consulting with its financial and legal advisers, which it didn't name.
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Tracinda said Friday it would make a tender offer to acquire up to 21.8
million shares of Tesoro, or 16% of its shares outstanding, for $64 per share,
an 11.9% premium over Tesoro's Thursday closing price. Tracinda said it
believed the fundamentals of the refining industry make it an attractive area
for investment. Tracinda already owns 5.5 million shares of Tesoro stock, or
4% of those outstanding, paying an average of $52.23 each for them.
A Tesoro spokeswoman said Friday that Tracinda's offer acknowledges Tesoro's
strategy to create shareholder value and the relatively lower stock valuation
versus others in the industry. — Claire Poole
See
press release from Tesoro Corp.
See
Monday story from Reuters
See
Friday story from MarketWatch
