Oil refiner Tesoro said it would review an unsolicited proposal by Kirk Kerkorian's Tracinda Corp. to buy a minority stake in the company for about $1.4 billion, but urged shareholders to take no action on the offer.
Tesoro shares fell more than 4 percent on the New York Stock Exchange Monday.
On Friday, Tracinda said it would make a tender offer to acquire up to 16 percent of Tesoro for $64 per share. The offer for up to 21.8 million shares was valued at $1.4 billion.
Tesoro said it would advise shareholders within 10 days about its view on the offer and its reasons for that position.
Tesoro urged shareholders to delay making a decision on the tender offer until they learn the company's position.
Tracinda currently owns 5.5 million shares of Tesoro common stock, or about 4 percent of those outstanding, the company said. It paid an average of $52.23 each for them.
Earlier this year, Tracinda made a $4.5 billion offer for Chrysler, which was eventually sold to Cerberus Capital Management.