Tags: CVR | Energy | Icahn | Offer

CVR Energy Rejects Icahn's Offer for Second Time

Tuesday, 20 Mar 2012 10:42 AM

 

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CVR Energy Inc. rejected billionaire investor Carl Icahn's $30 per share tender offer for the second time, and the crude oil refiner asked its stakeholders not to tender their shares.

"After committing to drop his tender offer and proxy solicitation if he didn't receive sufficient tenders by March 23, Mr. Icahn has again gone back on his word by extending his distracting and detrimental campaign," said Chief Executive Jack Lipinski in a statement.

Last month, Icahn — CVR's top shareholder with a 14.54 percent stake — had called for a sale of the company, and said the stock price did not reflect current high profit margins enjoyed by U.S. refiners.

Icahn's offer includes a "contingent value right" that enables shareholders to receive additional cash if the company gets sold for more than $30 a share.

CVR Energy later issued a statement urging stockholders to reject the offer, saying it was "inadequate" and not in the best interest of the company or its stockholders.

Last week, Icahn extended his offer by 10 days, citing feedback from some large shareholders of the oil refiner.

On Monday, Icahn, who wants to buy CVR Energy and then sell it, said in an open letter that a sale of the crude oil refiner "will not be easy.

Shares of CVR, which have gained about 50 percent of their value in the last three months, closed at $27.06 on Monday on the New York stock Exchange.

© 2014 Thomson/Reuters. All rights reserved.

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