May 21 Carl Icahn said he has raised his stake
in CVR Energy Inc to 80 percent, giving the billionaire
investor total control over the oil refiner's board more than
three months after he made an offer to acquire the company.
Icahn replaced seven of CVR's nine-member board with his
nominees last month, when he won majority control of the company
with a $30-a-share tender offer that raised his stake to 69
The corporate raider turned activist investor extended the
offer and acquired the additional 11 percent stake that gives
him the right to replace the last two members of the board.
Icahn, who wants to resell CVR, is still short of the 90
percent he needs to merge the oil refiner with one of his
The offer for CVR includes a contingent value right that
would give shareholders additional cash if Icahn manages to sell
the company for more than $30 per share.
But selling CVR will not be easy, Icahn has acknowledged
himself in a March 19 letter to CVR's shareholders.
CVR, which owns refineries in Coffeyville, Kansas and
Wynnewood, Oklahoma, has benefited from lower prices for the
crudes it processes.
Midwest crude oil prices have been cheaper than those on the
Gulf Coast because of high inventories at the oil delivery hub
of Cushing, Oklahoma.
That advantage is expected to wane soon, however, as the
Seaway crude pipeline begins to relieve some of the glut at
Cushing. That could make CVR less attractive to buyers, analysts
CVR Energy shares, which have gained about 10 percent since
Icahn made his first bid for the company, closed at $30.47 on
Friday on the New York Stock Exchange.