Southwest Gas Defends Planned Acquisition in Letter to Icahn
October 13 2021 - 6:58AM
Dow Jones News
By Matt Grossman
Southwest Gas Holdings Inc. Wednesday published a letter to
investor Carl Icahn that defended the company's plans to buy
Questar Pipeline Co., a week after Mr. Icahn told the company it
should abandon the acquisition.
Mr. Icahn last week said that he had taken a stake in Southwest,
a Nevada-based utility, and that he opposed its planned deal for
Questar. The deal, which would be worth nearly $2 billion, is
overpriced and would distract Southwest from existing challenges,
Mr. Icahn had said.
In its response Wednesday, Southwest said that the deal to buy
Questar from Dominion Energy Inc. is priced fairly and would
contribute to Southwest's earnings starting next year.
Pushing back against other criticisms that Mr. Icahn leveled,
Southwest said its returns to investors have been solid in the
context of its operating environment. The company also defended its
management practices, asserting that pay for executives is well
aligned with investors' interests and that board oversight is
strong.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
October 13, 2021 06:43 ET (10:43 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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