(IBTimes) - Billionaire magnate Carl Icahn has raised his
share in CVR Energy Inc. (
) to 80 percent and is completing the replacement of the
incumbent nine-member board of directors after winning the
support of shareholders in the refiner and marketer of
The billionaire activist investor replaced seven board members
last month after winning a $30-a-share tender offer that raised
his stake in the company by about 48 million shares to
approximately 69 percent.The replacement of the last two board
members of the Sugar Land, Tex., company was announced
CVR shares rose 88 cents to close Monday at $31.35. The share
value has risen more than 15 percent since April 2. Icahn, 76,
first announced his hostile bid for all outstanding shares on
Feb. 16. Icahn is seeking to sell the company for $37 per
On Friday, additional shareholders agreed to accept the offer
to sell about 9.5 million shares of stock to Icahn that includes
a contingent cash payment if Icahn can sell the company for more
than the tender offer share price. The New York activist is
seeking to move CVR Energy's annual meeting to May or June so
that he can formally acquire all the shares he bid for in his
$2.6 billion tender offer. The previous board adopted a
resolution that would bar that on a technicality.
In an April letter, the board urged shareholders not to sell,
encouraging them to consider that the "long-term value exceeds
$30 a share." Billionaire hedge fund manager John Paulson
predicted the company could be sold for as much as $36 a share,
Bloomberg News reported.
CVR Energy which has 950 employees, previously reported net
income soared last year to $345.8 million, or $3.94 a share, from
$14.3 million, or 16 cents, a year earlier. Revenue rose 23
percent to $5 billion. Earnings gained because the company bought
cheaper oil in high inventory in Cushing, Okla., rather than
higher priced fuel located at the Gulf Coast.
However, the reverse flow of the 670-mile Seaway pipeline
connecting Freeport, Tex.,with Cushing is expected to ease some
of that advantage,lowering CVR's current competitive advantage,
analysts told Reuters.
CVR also owns fertilizer maker CVR Partners LP (
), whose share price rose 75 cents to close Monday at $21.57.
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