Icah Will Drop Bid for Refiner CVR Without 36% Tender

(Corrects description of contingent right in third paragraph of story published March 9.)

Billionaire investor Carl Icahn will withdraw his hostile bid for oil refiner CVR Energy Inc. (CVI) unless holders of 36 percent of the stock agree to sell to him by March 23.

“If I do not receive 36 percent, I will respect the wishes of shareholders, drop the proxy fight and move on,” Icahn said in a statement today. Icahn is the largest shareholder in the Sugar Land, Texas-based refiner, with about 14.5 percent of the stock.

Icahn announced his intention last month to offer $30 a share, a proposal that values the company at at least $2.6 billion, according to Bloomberg calculations. If he gains control of the company he will seek another buyer and give CVR holders a right to additional money in the event of a sale, Icahn said today.

CVR’s board reiterated its opposition to the takeover today.“His offer is simply his vehicle to put his employees and friends on the board of CVR Energy at an inadequate price,” the company said in an e-mailed statement.

CVR rose 6 percent to $27.57 at the close in New York. The shares have gained 24 percent since the company disclosed Icahn had taken a stake in it.

To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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