Tesoro terminates rights plan

By Lisa Kerner

Charlotte, N.C., March 7 - Tesoro Corp.'s board of directors terminated the company's stockholder rights plan that was set to expire Nov. 20, 2010.

The plan was amended to accelerate the expiration date to the close of business on March 6.

"Both the implementation and termination of this plan reflect the board's commitment to acting in the best interest of our stockholders, and we will continue to act in that regard," president and chief executive officer Bruce A. Smith said in a company news release.

It was previously reported that Tesoro's stockholder rights plan was designed to reduce the likelihood that a potential acquirer would gain control of Tesoro without paying a premium for all of the company's shares. The plan featured a threshold for triggering exercise of the rights plan at 20% of the outstanding shares of Tesoro common stock.

Tesoro shareholder Tracinda Corp. had said Tesoro's rights plan, adopted in November, resulted in a failure of a condition to Tracinda's tender offer for Tesoro's shares of common stock.

On Nov. 27, Tracinda withdrew its $64-per-share cash tender offer for up to 21,875,000 shares, or some 16%, of the outstanding shares of Tesoro.

Tesoro is a San Antonio-based petroleum refiner.

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