Gulf Oil take-over deal approved

Press, 7 March 1984, Page 27

Gulf Oil take-over deal approved

NZPA-Reuter Pittsburgh Gulf Oil has agreed to be purchased by Standard Oil of California for about SNZI9.S billion in the largest corporate take-over in United States history.

Gulf says the boards of directors of both companies have approved the deal, which calls for Standard Oil to buy Gulfs outstanding shares for about SNZI2O apiece in cash. Gulf, the fifth largest United States oil company, said Standard Oil, the fourth

largest, will soon initiate a cash offer for all of Gulfs 165 million outstanding common shares.

Standard Oil will not be obligated to purchase shares unless 51 per cent of the outstanding shares are tendered to it

Gulf has been searching for a way to avoid a hostile take-over bid by T. Boone Pickens’ Mesa Petroleum, which has led a group that has been contending with Gulfs management for months.

Gulfs board met throughout Monday to consider the options available to it and, according to sources, heard presentations by Standard Oil, Atlantic Richfield, which is the seventh largest United States oil company, and the Wall Street investment bank of Kohlberg, Kravis and Roberts. Gulfs shares were not traded on Monday morning, pending developments, but when trading resumed in the afternoon, the stock rose $U51.375 to $70,875 a share.