Why Carl Icahn Dumped $four hundred Million In Occidental Petroleum Stock – OilPrice.com

Why Carl Icahn Dumped $four hundred Million In Occidental Petroleum Stock – OilPrice.com

Investor Carl Icahn has slashed his immense holdings of Occidental Petroleum in an escalation of the tensions between Oxy and Icahn over Oxy’s seize of Anadarko Petroleum, in accordance to the activist investor’s web space, citing an begin latter to Oxy shareholders on Friday.

Icahn dump one-zero.33 of his shares, or 10 million, leaving Icahn with 23 million shares valued at $900 million. As of Might possibly probably maybe, Icahn held $1.6 billion in Occidental, or four.four% of the corporate.

However Icahn has spoken out over Occidental’s $38 billion seize of Anadarko in August—a seize that became made without shareholder approval. Within the days that followed, Icahn tried to usa four individuals of Oxy’s board, asserting they had made errors in how it purchased Anadarko and how a lot it paid for it.

“The Icahn Contributors take into consideration that the Company’s recent directors comprise made a assortment of errors in how and at what fee they pursued the Anadarko transaction. As effectively as to agreeing to costly financing, the Company additionally structured the Anadarko transaction in a scheme that deprived the stockholders of the Company of the supreme to vote on the transformational Anadarko transaction,” Icahn mentioned in the submitting to the SEC, adding that the deal became excessive-pains.

“For my fragment, Oxy’s acquisition of Anadarko is nothing better than a gigantic $Fifty seven billion levered bet on the worth of oil – and the bet is failing.” Icahn’s letter to investors read in fragment.

Icahn has accused determined individuals of the board of buying Anadarko for the sole reason of conserving Occidental from being a takeover target. Icahn has vowed to begin a proxy fight in opposition to Occidental’s board sometime in 2020.

Occidental’s fragment trace has misplaced relatively a few ground this year, reaching a 14-year low on Thursday, however ticked up on Friday on news of Icahn’s stock purge. No mention became made as to how a lot Icahn misplaced on his divestment.

By Julianne Geiger for Oilprice.com

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November 9, 2019

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