Carl Icahn Seeks to Replace Four Occidental Directors

By Christopher M. Matthews

Billionaire investor Carl Icahn is seeking to replace four directors at Occidental Petroleum Corp., saying the company's board mismanaged its $38 billion deal to buy Anadarko Petroleum Corp.

The company's pending deal revealed a lack of "effective corporate governance," and it needs new directors to ensure the acquisition realizes its cost savings, Mr. Icahn said in a securities filing.

Mr. Icahn -- who disclosed he holds $1.6 billion in Occidental shares, or nearly 5% -- asked other shareholders to request that Occidental set a date to consider his proposal, which he said was a necessary first step in the process to nominate new directors.

In a lawsuit Mr. Icahn filed against Occidental in May, he said the Anadarko deal is "hugely overpriced" and that Occidental lined up expensive financing to consummate it, putting the company at risk if oil prices fall. The lawsuit argued Occidental should explore selling itself, saying that it would be in the best interest of shareholders.

Occidental did not respond to a request for comment.

Chevron Corp. 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.

Write to Christopher M. Matthews at christopher.matthews@wsj.com

(END) Dow Jones Newswires

June 26, 2019 18:31 ET (22:31 GMT)

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