Posted at 11:51 a.m., Monday, October 29, 2007
Tesoro board to consider Kerkorian proposal
Associated Press
SAN ANTONIO (AP) — Tesoro Corp. said Monday its board will review an unsolicited $1.4 billion offer by billionaire investor Kirk Kerkorian to buy another 16 percent stake in the oil refiner.The Tesoro board will review the offer over the next 10 days, said the company, which operates seven refineries in the western United States and more than 900 retail stations. Among its holdings is Hawai'i's largest refinery.
Kerkorian's Tracinda Corp., which already owns 4 percent of the company, offered Friday to buy an additional 21.9 million shares for $64 a piece. That was a 12 percent premium to the stock's closing price on Thursday.
Shares of Tesoro fell $2.78, or 4.3 percent, to $61.70 in midday trading Monday.
Kerkorian is known for bold investments, often making unsolicited bids. The casino tycoon was listed by Forbes magazine as the nation's seventh richest man.
Tesoro is scheduled to report quarterly earnings Thursday, but the refining sector has been under increasing margin pressure. Crude oil prices have skyrocketed while retail prices for gasoline and other oil products have not climbed as fast, leaving major refiners squeezed.
