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SAN ANTONIO -- Tracinda Corp., a company owned by billionaire and Las Vegas hotelier Kirk Kerkorian, made a cash tender offer to purchase 21.9 million shares of Tesoro Corp.'s stock at $64 per share, the San Antonio Business Journal reported.
The purchase price for the transaction, worth $1.4 billion, is 11.9 percent higher than the company's closing stock price of $57.20 on Oct. 25, the report stated.
Tesoro's board of directors will review and consider the proposed, unsolicited partial tender offer and will advise the company's stockholders of its position on the offer, as well as its reasoning, within 10 business days, the company said in a statement.
Tracinda currently owns 5.5 million shares of Tesoro common stock, or 4 percent of the company's outstanding shares. With this transaction, Tracinda would own 20 percent of Tesoro's common stock, according to the report.
Tracinda officials told the Journal the fundamentals of the petroleum refining industry make it an attractive area for investment, and the company has chosen Tesoro because of its well-positioned stance in the industry and a management team that effectively executes its strategic plan, the report stated.