Marathon Turns to the Markets

Marathon Oil Corp. is initiating a public offering of 30 million common shares to help retire the debt it expects to assume with its recently announced agreement to buy Ashland Inc.'s minority interest in Marathon Ashland Petroleum LLC (MAP).

Alternatively, Marathon may use the approximately $1 billion in proceeds to retire currently outstanding long-term debt.

The underwriters may purchase an additional 4.5 million shares to cover any overallotments. Citigroup Global Markets Inc. and Morgan Stanley & Co. Inc. are joint book-running managers.