Delta Petro shares tank after Tracinda withdraws

Billionaire investor Kirk Kerkorian's Tracinda announced at the end of last month that it would buy the shares because it saw "significant value in the oil and gas industry."

The $11-per-share offer represented a nearly 21 percent premium to Delta Petroleum Corp.'s closing stock price just prior to the announcement.

But as a string of dour economic reports rolled out, shares in Delta and other energy companies began to fall, with investors believing consumer and businesses will cut back on energy consumption.

Delta's shares closed Thursday down nearly 31 percent at $6.66, having lost 27 percent of their value in the last week.

On Friday, shares fell 32 percent, or $2.14, to $4.52.

Tracinda is already Delta's largest shareholder, with a roughly 35 percent stake.

Los Angeles-based Tracinda said it was still confident in the business and Delta's management.

Tracinda in October lowered its stake in Ford Motor Co. and said it would invest in other industries such as casinos, hotels and oil and gas, where it sees more value.