A firm led by billionaire investor Kirk Kerkorian said Friday it is seeking to boost its stake in Tesoro Corp. to 20 percent by paying a 12 percent premium for some of the oil refiner’s shares, the Associated Press reports.
Tracinda Corp. said it plans to offer $64 apiece for 21.9 million, or about 16 percent, of outstanding Tesoro shares. The firm, of which Kerkorian is the only shareholder, said it already owns about 4 percent of Tesoro shares.
The offer represents a premium of about 12 percent over Thursday’s closing price of $57.20. It is “without regard” to the 10-cent-per-share dividend Tesoro expects to pay next month.
Tracinda said it “believes that the fundamentals of the petroleum refining industry make it an attractive area for investment,” the firm said in a statement. Tesoro “is well positioned within the industry and has a management team that is effectively executing its strategic plan,” it added.
