Icahn Enterprises LP (IEP) faced a pre-market plunge of 8.77% on Wednesday as investors reacted to reports that the company plans to significantly increase its stake in U.S. oil refiner CVR Energy (CVI) by more than 20%.

According to a report by The Wall Street Journal, billionaire activist investor Carl Icahn and his firm, Icahn Enterprises, intend to raise their stake in CVR Energy, where they currently hold a 66% ownership. The move is seen as an effort to boost IEP's control over the refiner, which IEP believes is undervalued.

To fund the increased investment in CVR Energy, Icahn Enterprises plans to cut its dividend payout in half, marking the second time the company has slashed its dividend in recent years. This decision has raised concerns among investors about potential dilution or other negative implications for IEP's shareholders.