United Refining Co. Inc. said Monday it was willing to counter an offer by OAO Lukoil Holding to acquire Getty Petroleum Marketing Inc. by increasing its offer to $6/share cash from $5.75/share and accepting a "less favorable lease arrangement" with Getty Realty, GPM's sister real estate affiliate.
United said the altered real estate deal is less favorable to it than Lukoil's deal by $4.25 million.
As a precondition for its bid, United has requested reimbursement of its out-of-pocket expenses and management time if GPM consummates a transaction with Lukoil at a price higher than $5.
"In light of the incremental value we are adding, we believe that it is not unreasonable for us to request assurance of at least recovery of $3 million of expenses and management time if we proceed with our formal bid," said a United statement.
OAO Lukoil last month offered to acquire Getty Petroleum Marketing, one of the largest independent US marketers of gasoline and petroleum products, in a $71 million cash deal (OGJ Online, Nov. 3, 2000). The bid is $5/share.
If Lukoil manages to complete the deal, it would be the first acquisition of a publicly held American company by a Russian corporation.