In a $2.6 billion deal, billionaire Carl Icahn won the opportunity to buy shareholder stakes in CVR Energy Inc. (NYSE: CVI).
He had been pressing the company for several months and faced opposition by the board of directors, who told shareholders to reject his offer.
The board of directors had called his offer “opportunistic,” expressing concern that he was trying to make the deal “at an inadequate price.”
But shareholders approved his offer of $30 per share, and following the acquisition, Icahn will own 69% of the company.
With this new stake in the company, Icahn will be able to replace more than half of the board of directors and sell the company, which he plans to do.
And if he can sell CVR, each shareholder could get up to $7 more per share.
Icahn said the deal will extend until May 18, giving him the possibility of obtaining 90% of the company.
The board of directors was planning a poison-pill provision to prevent the takeover even if shareholders were to agree, but this was waved last month.
In a statement, Carl Icahn said:
“We are pleased with the results of our tender offer and are excited to have CVR join the Icahn Enterprises family. We look forward to working together with the CVR team.”
The purchase of the shares began on Monday and will extend for two weeks.
CVR refines and markets petroleum and is based in Sugar Land, Texas.
Shares were up 1.26% on Monday to $30.43.
That’s all for now,