Icahn Wins $2.6 Billion Oil Refiner Bid

by Christopher Freeburn | May 7, 2012 12:34 pm

Icahn Wins $2.6 Billion Oil Refiner Bid

Carl Icahn will become the majority owner of CVR Energy (NYSE:CVI[1]) after most shareholders accepted[2] his $30 a share offer.

CVR’s board of directors had advised against the sale[3], saying the offer under-valued the company’s assets, but opted against a poison pill defense.

The company, which operates refineries in Kansas and Oklahoma, posted a $25.2 million loss during the first quarter. During the same period in 2011, it reported a profit of $45.8 million. However, adjusted EPS beat analysts’ forecasts by 9 cents, Bloomberg noted.

The billionaire investor now control a 69% stake in CVR.

Icahn plans to sell the company within 60 days. Shareholders might see as much as $7 in additional payments per share, if he completes a sale.

CVR shares were up more than 1% in Monday mid-day trading, just above $30.

The company’s shares have rise more than 60% in 2012.

Endnotes:
  1. CVI: http://studio-5.financialcontent.com/investplace/quote?Symbol=CVI
  2. most shareholders accepted: http://www.bloomberg.com/news/2012-05-07/carl-icahn-wins-cvr-energy-after-2-6-billion-offer.html
  3. advised against the sale: http://investorplace.com/2012/04/should-you-bet-on-the-icahn-cvr-bout/

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