Tracinda Offers to Acquire 14MM Shares of Delta Petroleum
Friday, October 31, 2008
Tracinda Corporation today announced that it intends to make a cash tender offer for up to 14 million shares of common stock of Delta Petroleum Corporation at a price of $11.00 per share. The offer price represents a 20.7% premium over Delta's closing stock price of $9.11 on October 30, 2008.
The shares to be purchased pursuant to the offer represent approximately 13.55% of the outstanding shares of Delta Petroleum Corporation common stock. Tracinda Corporation, of which Kirk Kerkorian is the sole shareholder, currently owns 36,128,000 shares of Delta's common stock, which represents approximately 34.98% of the outstanding shares. Tracinda’s average cost for such shares was approximately $19.03 per share. Upon completion of the offer, Tracinda would beneficially own 50,128,000 shares of Delta common stock, or approximately 48.53% of the outstanding shares.
Tracinda is making the offer because it believes that in light of current economic and market conditions there is significant value in the oil and gas industry. Tracinda further believes that Delta is well positioned in the industry with valuable resource plays, a strong asset base and exploration projects that Tracinda believes hold significant growth potential. Tracinda made its initial investment in Delta believing that Delta's management was extremely talented. Tracinda's interaction with Delta's management team over the past ten months has reinforced Tracinda's view.
Once the tender offer is commenced, offering materials will be mailed to Delta stockholders and filed with the Securities and Exchange Commission. Delta stockholders are urged to read the offering materials when they become available because they will contain important information.
The tender offer will be subject to customary conditions for transactions of this type. Tracinda’s offer will not be subject to financing.