Kerkorian pulls out of Tesoro bid

Billionaire Kirk Kerkorian’s Tracinda Corp. on Tuesday withdrew its $1.4-billion tender offer for 16% of Tesoro Corp., citing a stockholder-rights plan adopted by the oil refiner. Shares of Tesoro fell almost 6%.

The rights plan “inhibits value for all Tesoro shareholders by, among other things, restricting the ability of shareholders to vote, sell or acquire Tesoro shares freely without fear of triggering the draconian provisions of the rights plan,” Beverly Hills-based Tracinda said.

Tesoro, based in San Antonio, adopted the rights plan to block potential buyers from gaining control of the oil refiner without paying a premium for all of its shares, according to a statement last week.

The company said the so-called poison pill wouldn’t be triggered by Tracinda’s offer, which was announced Oct. 26.

“If I’m a shareholder I’m mad as hell,” said Fadel Gheit, an analyst at Oppenheimer & Co. in New York. “Why can’t you let the market decide what’s best for shareholders?”

Shares of Tesoro fell $3.04 to $48.65.

Tracinda said it was “disappointed that by adopting the rights plan Tesoro has elected to significantly impede the prospects for shareholder value creation.”