This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Icahn: CVR Energy Investors Agree To Takeover Bid

NEW YORK (AP) â¿¿ Billionaire investor Carl Icahn said Tuesday that a majority of CVR Energy Inc. shares have been tendered in support of his hostile takeover bid for the oil refiner.

Icahn, who wants to take control and then sell the Sugar Land, Texas, company, said investors owning 55 percent of the company's outstanding shares accepted his offer of $30 per share.

But Icahn cannot actually buy those shares until CVR's board removes a "poison pill" rule that prevents the sale of the company. The board has refused to do that, arguing that it can deliver a greater return for shareholders.

Icahn called on the company to move up an annual meeting now scheduled for mid-May to decide the issue. He wants to replace the board with his own slate of members who would clear the way for a takeover.

Icahn also extended his $30 per share tender offer for the rest of the CVR shares until April 30. He is offering $2.26 billion for the shares he doesn't already own. The bid values the entire company at about $2.6 billion.

"In light of the clear message that shareholders have now sent to the board, it would be a shame if the board took any action to thwart or delay our offer," Icahn said in a statement.

If the board blocks his takeover bid, Icahn said he would launch a proxy fight to take control.

The CVR board noted in a statement that investors could withdraw shares tendered in Icahn's offer at any time.

"The real choice for stockholders will be at our annual meeting where they will decide whether to elect Mr. Icahn's hand-picked nominees in place of our qualified and experienced board of directors with their track record of delivering value," the board said.

The company's annual meeting is scheduled for May 18 in Sugar Land, Texas.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs