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Tesoro and Valero Rework Refinery Deal

IN BRIEF/ ENERGY

May 07, 2002|Associated Press

Tesoro Petroleum Corp. has renegotiated the price it will pay Valero Energy Corp. for a refinery and 70 service stations in California, and the deal will close this month, the companies said.

The San Antonio-based oil companies said they agreed to trim the purchase price by $50 million to $1.075 billion and defer payment of $150 million.

Last week, Tesoro Chief Executive Bruce A. Smith stunned Valero executives and analysts when he announced that Tesoro might back away from the refinery purchase.

The comment sent Tesoro's stock down 30% on Thursday. It rebounded by 17% on Friday.

News of the renegotiated deal lifted Tesoro shares by 52 cents to $9, but it sent Valero shares down $1.36 to $41.63. Both trade on the NYSE.

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