Top shareholder Carl Icahn has moved closer to buying CVR Energy, after the billionaire investor said 55% of the crude oil refiner’s outstanding shares was tendered to his $2.26 billion offer, Reuters reported Monday. Icahn, who plans to buy CVR for $30 a share and then sell it, holds a 14.5% stake in the company.
(Reuters) – Top shareholder Carl Icahn has moved closer to buying CVR Energy, after the billionaire investor said 55 percent of the crude oil refiner’s outstanding shares was tendered to his $2.26 billion offer.
Icahn, who plans to buy CVR for $30 a share and then sell it, holds a 14.5 percent stake in the company.
“It would be a shame if the board took any action to thwart or delay our offer. …if they do so we will seek to hold them accountable to the maximum extent permitted by law,” Icahn said in a letter to the board of the company.
Soon after Icahn reported his stake in CVR in January, the company had adopted a shareholders’ rights plan, or a poison pill, to make it difficult for the investor to raise his stake.
Icahn on Tuesday said he intends to install his nominees as board members soon so that the poison pill is removed.
The offer also included a “contingent value right” that enables shareholders to receive additional cash if the company gets sold for more than $30 a share.
The shareholder support comes after a series of setbacks for the corporate raider-turned-activist investor.
Last year, he gave up on his years-long public campaign against Lions Gate Entertainment and dropped his attempt to get board seats at Clorox Co. In August, prescription drug maker Forest Laboratories fended off his efforts to get board seats. (Reporting by Vaishnavi Bala in Bangalore; Editing by Don Sebastian)((firstname.lastname@example.org within U.S. +1 646 223 8780 outside U.S. +91 80 4135 5800 Reuters Messaging:email@example.com)