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Occidental Dilutes Icahn to Pay Buffett as Debt Woes Mount

  • CEO Hollub survived activist’s campaign to oust board
  • Occidental’s shares have plunged since Anadarko takeover
Warren Buffett
Warren BuffettPhotographer: Scott Eells/Bloomberg
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Occidental Petroleum Corp. is paying a special dividend to Warren Buffett in shares rather than cash, diluting investors including activist billionaire Carl Icahn as the indebted shale explorer grapples with oil’s collapse.

The Houston-based oil producer issued common shares worth about $257 million to honor a quarterly payout on Berkshire Hathaway Inc.’s preferred stock, according to a filing Wednesday. Occidental had been paying cash since Buffett invested $10 billion last year to help fund the company’s $37 billion takeover of Anadarko Petroleum Corp., demanding an 8% annual dividend.