Icahn Puts Occidental on Notice About Deal for Anadarko -- WSJ
July 20 2019 - 3:02AM
Dow Jones News
By Saurabh Chaturvedi
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 20, 2019).
Billionaire investor Carl Icahn has taken another step in his
effort to replace four directors at Occidental Petroleum Corp.,
alleging the company's board mismanaged its $38 billion deal to buy
Anadarko Petroleum Corp.
A formal solicitation statement filed Thursday with the U.S.
Securities and Exchange Commission said: "The company's current
directors have made a number of mistakes in how and at what cost
they pursued the acquisition of Anadarko Petroleum Corporation."
Mr. Icahn seeks to replace the directors and make some changes to
the company's bylaws.
The move to formally file the solicitation statement follows
talks between the activist investor and Occidental Chief Executive
Vicki Hollub over the issue.
Occidental topped Chevron Corp. in a bidding war for Anadarko in
May, winning prized assets in the heart of the U.S. oil boom: the
Permian Basin of West Texas and New Mexico. Occidental's emergence
as the likely victor means it is poised to absorb a company nearly
its own size as it bulks up in the region.
Chevron had agreed to purchase Anadarko for about $33 billion on
April 12, but Occidental offered the oil company $38 billion on
April 24 and then sealed its bid by boosting the cash portion of
its offer. Occidental's deal with Anadarko is expected to close in
the second half of 2019.
A number of large Occidental shareholders opposed the deal. Mr.
Icahn, who holds $1.6 billion in Occidental shares, or nearly 5%,
on June 26 filed a preliminary copy of the solicitation statement
with the SEC.
Occidental said it is reviewing the latest materials filed by
Mr. Icahn and will respond in due course.
The company had previously said that it looks forward to
addressing Mr. Icahn's concerns. It had earlier also said the
Anadarko deal offered "a unique opportunity to deliver compelling
value and returns to the shareholders of both companies."
Anadarko also didn't immediately respond to request for
comment.
Write to Saurabh Chaturvedi at Saurabh.Chaturvedi@wsj.com
(END) Dow Jones Newswires
July 20, 2019 02:47 ET (06:47 GMT)
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