Occidental Nears Settlement With Carl Icahn

By Cara Lombardo and Rebecca Elliott

Occidental Petroleum Corp. is nearing a truce with Carl Icahn that would conclude one of the highest-profile corporate clashes of the past year and usher the activist investor into the embattled oil producer's board room as it seeks to recover from a series of setbacks.

Andrew Langham and Nicholas Graziano, two lieutenants of the billionaire investor, would receive seats on Occidental's board under the terms currently being discussed, people familiar with the matter said. Mr. Icahn and the company would also mutually agree on a third, independent director, who is likely to be Herbalife Nutrition Ltd. board member Margarita Paláu-Hernández, some of the people said.

As part of the deal, Mr. Icahn would also bless Occidental's plan to bring back Stephen Chazen, its former chief executive, as chairman, as The Wall Street Journal reported this past week.

Occidental CEO Vicki Hollub, who has come under fire from Mr. Icahn, is expected to retain her position.

The agreement could become official as soon as Monday, the people said, cautioning that the situation is still fluid.

It would enable Occidental to put behind it a major distraction at a time when the company is reeling from dual shocks that have sent crude below $30 a barrel.

For his part, Mr. Icahn, who had been seeking to replace the entire board, would now get a say in how Occidental tries to maneuver its way out of its current jam. Mr. Icahn has lost an estimated $1 billion or more on his investment between his initial position, purchased last year, and the hundreds of millions of dollars worth of additional shares he bought recently.

-- Christopher M. Matthews contributed to this article.

Write to Cara Lombardo at cara.lombardo@wsj.com and Rebecca Elliott at rebecca.elliott@wsj.com

(END) Dow Jones Newswires

March 22, 2020 12:25 ET (16:25 GMT)

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