OKC-based Kerr-McGee starts tender offer

Journal Record, The (Oklahoma City), Apr 19, 2005 by Journal Record Staff

Kerr-McGee has started its modified Dutch auction tender offer for up to $4 billion of its common stock. The offer to buy shares will expire at midnight EDT May 18, unless it is extended.

Stockholders will have the opportunity to return some or all of their shares at a price not less than $85 per share or more than $92 per share, company officials said Monday.

Based on the number of shares tendered and the prices specified by the stockholders, Kerr-McGee will determine the lowest per-share price within the range that will enable the company to buy up to $4 billion of its common stock.

If the number of shares tendered at or below the determined per- share price totals more than $4 billion, Kerr-McGee will buy shares tendered at or below the determined price on a pro rata basis, as will be specified in the offer to be distributed to stockholders.

All shares will be purchased at the same price, even if stockholders selected a lower price. The company will not buy any shares tendered above the determined purchase price. If the tender is fully subscribed, $4 billion of common stock will be repurchased, representing 27-29 percent of the estimated 161.4 million shares outstanding as of March 31.