Delta Petroleum Corp. (NASDAQ: DPTR) has announced that Kirk Kerkorian's Tracinda Corp. has completed the due diligence process for its strategic investment in Delta. Tracinda has now waived its due diligence condition and it will now proceed with its planned investment into Delta Petroleum.
Tracinda previously agreed to purchase 36 million shares of Delta Petroleum's common stock for $684 million. This generates roughly a $19.00 per share investment, while shares closed out yesterday with a $20.79 level and the 52-week trading range is $13.06 to $24.94. Its market cap based on yesterday's close is $1.38 billion.
Earlier this week, DP gave an update on its reserves and production guidance, so Kerkorian must still be in the camp that this is a win-win. The company has a special meeting of shareholders on February 19, 2008 to vote on this investment.
Jon Ogg is an editor and partner of 247WallSt.com.
Kerkorian's Tracinda proceeds on Delta Petroleum investment
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