tesoro considers kerkorians offer

Company evaluates selling off an additional 16%.

Tesoro Corp. has revealed that it is carefully reviewing an offer from billionaire investor Kirk Kerkorian to sell an increased stake in the company, according to the Associated Press.

The Tesoro board will be in consideration over sale for the next 10 days. The unsolicited offer asks the refiner to sell about 16% of its common stock to Tracinda Corp., Kerkorian’s company. Tracinda already owns 4% of the Tesoro and offered to buy an additional 21.9 million shares for $64 a piece, a 12% premium to the stock’s closing price.

Company share’s saw a quick jump after the announcement of the news this past Friday. But midday yesterday, shares were trading down $2.75 to $61.73, the report said.Kerkorian, considered a bold investor and casino tycoon, was listed by Forbes magazine as the nation’s seventh richest man.

Tesoro operates seven refineries in the western United States and more than 900 retail stations.

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