Apollo starts tender offer for Parallel Petroleum

Apollo initiates tender offer to acquire Parallel Petroleum's outstanding shares in $483M deal

• On 3:56 pm EDT, Thursday September 24, 2009

NEW YORK (AP) -- Subsidiaries of asset manager Apollo Global Management LLC on Thursday began a tender offer to acquire all of the outstanding shares of Parallel Petroleum Corp.'s common stock, including the rights to purchase preferred stock, in a deal valued at about $483 million, which includes $351 million of debt.

Last Tuesday, the oil and natural gas producer agreed to be acquired by Apollo for $132 million. Parallel shareholders will receive $3.15 per share, representing an 11 percent premium over Parallel's closing share price from the day before the acquisition was announced.

PLLL Holdings LLC and PLLL Acquisition Co., subsidiaries of Apollo that were formed to acquire Parallel, initiated the tender offer on Thursday.

Parallel shares rose 1 cent to $3.14 in afternoon trading.