Tracinda Corp., the investment arm of billionaire investor Kirk Kerkorian, said Friday it will launch a cash tender offer for 14 million Delta Petroleum shares, in a move to boost its stake in the Denver-based oil and gas explorer to about 48.5 percent.
Tracinda, which currently owns 36.1 million Delta Pete shares, or a 35 percent stake, is offering $11 per share for the added 13.55 percent stake. That marks a nearly 21 percent premium to Delta Petroleum Corp.’s closing stock price Thursday.
Los Angeles-based Tracinda said in a statement that it’s making the offer because it believes there is “significant value in the oil and gas industry,” even amid current global market turmoil.
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