Delta Petroleum, Tracinda deal one step closer to completion

By Lisa Kerner

Charlotte, N.C., Feb. 8 - Tracinda Corp. has completed the due diligence for its strategic investment in Delta Petroleum Corp.

With the due diligence condition now waived, Tracinda will move forward with its purchase of 36 million shares of Delta Petroleum's common stock for $684 million.

"I am very confident that this transaction will allow Delta Petroleum to significantly increase proved reserves, production and cash flow on a per share basis, thereby creating value for all of our shareholders," Delta Petroleum chairman and chief executive officer Roger Parker said in a company news release.

Delta Petroleum shareholders are set to vote on the transaction at a special meeting on Feb. 19.

On Dec. 31, Tracinda announced it would invest $684 million to acquire 36 million primary shares, or 35%, of Delta Petroleum's common stock priced at $19 per share.

As previously reported, the investment gives Tracinda the right to nominate members to Delta Petroleum's board of directors on a pro rata basis reflecting its share ownership.

Tracinda is a privately held Nevada corporation wholly owned by Kirk Kerkorian.

Denver-based Delta Petroleum is an oil and gas exploration and development company.

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