Icahn wins $2.26-bn takeover battle with CVR Energy board
20 April 2012
Independent petroleum refiner and marketer of high value transportation fuels CVR Energy Inc yesterday paved the way for billionaire-activist investor Carl Icahn to proceed with his $2.26-billion takeover offer by withdrawing its poison pill defence.
The move allowed Icahn to pursue his $30 a share offer for the Sugarland, Texas-based company, plus a ''contingent cash payment'' right.
In February, Icahn had launched a $2.26 billion bid for CVR Energy, and demanded a change in the entire board of the crude oil refiner and fertilizer company. (See: Carl Icahn launches $2.6-bn bid for CVR Energy)
Icahn's cash offer is a 9-per cent premium over CVR Energy's 15 February closing price on the New York Stock Exchange. CVR Energy shareholders also would receive a ''contingent-value right'' that would entitle them to additional cash if the company is sold for more than the $30 a share.
Icahn, best known for investing in companies with the aim of making changes in the company's outlook and create more value for shareholders, holds a 14.5-per cent stake and is the largest shareholder in CVR Energy.
Although the board of CVR Energy had opposed Icahn's offer on the ground that that the long-term value of the company exceeded $30 a share, it yesterday said, ''many of the company's stockholders may prefer to realize value in the near term and would consider the offer, as revised, an attractive near-term alternative.''
Early this month, Icahn claimed victory after majority shareholders of CVR Energy, owning 64 per cent of the company's share, had tendered their shares to his hostile bid. (See: Carl Icahn's $2.6-bn bid for CVR Energy gets majority support)