California Resources Corp. recommended Thursday that shareholders reject an unsolicited “mini-tender” offer for shares by a Canadian investment company.
The Chatsworth oil and gas producer announced it had received notice of the offer by TRC Capital Corp. to purchase up to 1.5 million shares of California Resources for $11.45 a share in cash. The offer is 5.1 percent lower than the closing price on June 28, the last day before the offer began.
“CRC does not endorse TRC Capital’s unsolicited mini-tender offer and recommends that shareholders do not tender their shares,” the company said in a statement.
California Resources has struggled since oil prices plunged in 2014. Earlier this month the company staged a 1-for-10 reverse stock split that raised its price from about $1.50 to $15. But since then the stock price has continued to decline.
TRC Capital is based in Alberta and has made limited tender offers for other companies, including Starbucks Corp., Duke Energy and Anadarko Petroleum.
California Resources shares closed down $1.10 or 8.3 percent to $12.20 on the New York Stock Exchange.