NEW YORK — An investor group led by oilman T. Boone Pickens said Wednesday that it will cash in its 8.9 million shares of Phillips Petroleum Co. stock for $53 a share in cash, realizing a pretax profit of $89 million.
Pickens said the stock sale also would mean an opportunity for additional income for Phillips' 200,000 other shareholders.
He estimated that, since his group began buying Phillips stock last October, the market value of the shares held by the other stockholders has climbed $18 a share, or by $2.8 billion.
On Wednesday, Phillips stock gained 62.5 cents to $49.875 a share, with more than 3.2 million shares changing hands.
Part of Settlement
The stock sale was part of a settlement reached last December, when Pickens' Mesa Partners group agreed to end a hostile bid for Phillips.
Later, another bid was launched for Phillips by financier Carl Icahn. Icahn dropped his bid Monday and is expected to realize a pretax profit of $40 million from his 7.5 million shares.