Gilligan Oil Co. has made a statement that it is no longer under contract in regards to a proposed acquisition of the Northern Kentucky-based Ameristop convenience store chain. Pat Gilligan, the company’s CEO, made the announcement after Petro Acquisitions Inc.Ameristops’s parent companyfell into receivership
earlier this week.
Gilligan did not discuss the matter further, stating only that the company was not ruling out a future deal.
The problem started when Gilligan Oil had tentatively agreed to buy all of Petro Acquisitions’ shares for $8.7 million from Walnut Partners, a minority owner of Petro.Walnut sued Petro and majority owner Donald R. Bloom for failing to buy back Walnut’s shares according to the terms of an earlier redemption agreement. According to court documents, Bloom, Petro’s president, improperly interfered in negotiations with Gilligan, claiming that Walnut did not have the right to sell all of Petro’s shares and that Gilligan Oil had to separately negotiate with him. Walnut said that Bloom’s conduct goes against a March agreement between it and Bloom.
Gilligan Oil operates more than 40 Shell stations and convenience stores as well as dozens of Sunoco and Exxon stations throughout Ohio.