Tracinda to buy 35% of oil driller
Kirk Kerkorian’s Tracinda Corp. will pay $684 million for a 35% stake in Delta Petroleum Corp. in a deal that will help Delta speed drilling activities in the Rocky Mountains.
Denver-based Delta said the agreement also would provide funding for possible acquisitions. Its board unanimously approved the agreement allowing Beverly Hills-based Tracinda to acquire 36 million shares.
The $19-a-share purchase price represents a 23% premium to the company’s closing stock price Friday.
Tracinda’s main business is buying, selling and holding equity securities. Its deal with Delta is part of a strategy that calls for more investments in energy-related companies, said Tom Johnson, a spokesman for Tracinda.
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