Carl Icahn Seeks to Replace Four Occidental Directors
June 26 2019 - 6:46PM
Dow Jones News
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)
Copyright (c) 2019 Dow Jones & Company, Inc.
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