(Reuters) – US refinery Andeavor LLC agreed to pay $ 20 million in penalties to the Securities and Exchange Commission for insufficient control over a share repurchase plan it implemented while it was in talks to buy Marathon Petroleum Corp. 2018.
The SEC said on Thursday that Andeavor's CEO had urged its CFO to initiate a $ 250 million repurchase two days before the two companies would resume talks on a potential deal.
Andeavor's internal accounting controls failed to ensure that repurchases followed a corporate policy that prohibited repurchases while containing material non-public information, the order said.
The refinery repurchased 2.6 million shares of its stock from investors at an average price of $ 97 per share in February and March 201
Andeavor's parent, Marathon Petroleum, did not immediately respond to a request for comment.