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Tesoro's (TSO +6%) $2.5B purchase of BP's Carson oil refinery goes against the prevailing wisdom...

Tesoro's (TSO +6%) $2.5B purchase of BP's Carson oil refinery goes against the prevailing wisdom that says California is a lousy place to be a refiner because of the state’s environmental regulations. The deal brings the number of TSO's California refineries to three and lifts its operations in the state to 60% of its total. TSO says the deal leaves it "well positioned to generate significant operational efficiencies."
Comments (2)
  • Typical of TSO to write checks during the boom part of their cycle that leave them gasping for cash during the down. I remember seeing them below $2.00/share loaded with assets that couldn't be sold because when they need to sell no one in the industry wants to buy. In the mean time, it should be a boost for those that can time the cycle and the executives that stand to get the bonuses. Cyclical moral hazard?
    13 Aug 2012, 11:49 AM Reply Like
  • So BP can pay his evt. debt cause Mexico problems.
    13 Aug 2012, 01:52 PM Reply Like
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