United Refining bumps up offer for Getty Petroleum Marketing

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 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.

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