Proposals by Diamond Shamrock Corp., Pickens Don't Seem to Impress Investors
Neither institutional investors nor the stock market appear to be impressed with either Diamond Shamrock Corp.'s proposed restructuring or T. Boone Pickens's all-cash bid for the company.</br></br>Many institutional investors, who combined own almost 10% of Diamond Shamrock, say neither choice seems to represent a significant improvement over the stock's current value.</br></br>"It's going to be a difficult choice right down to the wire," said an executive of one of Diamond's largest shareholders.</br></br>As previously reported, the Dallas-based energy concern on Monday announced a major restructuring plan that calls for splitting the company into two and buying back 18% of its shares for $17 each. Mr. Pickens muddled the picture on Wednesday by making his third bid to buy the company, this time proposing to acquire the 105 million shares he doesn't already own for $15 a share, or about $2 billion.</br></br>Mr. Pickens asked Diamond Shamrock's board either to accept his offer or allow shareholders to vote on the two options. He requested a response by next Wednesday.