(Corrects description of contingent right in second paragraph of story published May 7.)
About 48 million shares were tendered in response to Icahn’s $30-a-share offer, giving him about 69 percent of the stock, according to a statement today. Holders of the remaining stock have until May 19 to take the same offer, which includes the right to an additional payment if Icahn can re-sell the Sugar Land, Texas-based company.
Icahn has criticized CVR’s management and urged a sale of the company, which owns refineries in the Midwest and holds a majority stake in fertilizer maker CVR Partners LP. CVR’s board had opposed the sale and said Icahn offer doesn’t properly value the company over the long term.
Seven members of the CVR board will be replaced with Icahn nominees as soon as all the tendered shares are purchased, according to the statement. The board waived a poison-pill provision last month that would’ve blocked the takeover after Icahn won the support of a majority of shareholders. Icahn plans to resell CVR about 60 days after buying it.
Gains on Shale Oil
CVR rose 1 percent to $30.35 at the close in New York. The shares have gained 62 percent this year. The owner of refineries in Coffeyville, Kansas, and Wynnewood, Oklahoma, has benefited from a boom in onshore shale-oil production that lowered the cost of crude it buys.
CVR reported a first-quarter loss of $25.2 million, or 29 cents a share, compared with net income of $45.8 million, or 52 cents, a year earlier, according to a May 1 statement. Excluding losses from contracts used to lock-in commodity prices and maintenance expenses, the company earned 75 cents a share, 9 cents more than the average of five analysts’ estimates compiled by Bloomberg.
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