Billionaire Carl Icahn's Icahn Enterprises (NASDAQ:IEP) plans to cut its dividend in half in order to fund a boost of its stake in CVR Energy (NYSE:CVI).

Icahn plans to boost his stake in CVR Energy (CVI) to more than 80% and will make a tender offer for 15 million shares at $17.50 a share, a 6% premium to Thursday's closing price, according to a WSJ report late Thursday, which cited drafts of statements that Icahn and his firm plan to release Friday.

IEP believes that CVR Energy (CVI), which has a market cap of $1.7 billion, is undervalued, according to the statements.

In order to fund his investment in CVR (CVI), where he currently has a 66% stake, Icahn will have the dividend in his investment vehicle Icahn Enterprises (IEP), according to the report.

This is the second time that the Icahn Enterprises (IEP) divided will be halved. IEP cut the dividend in August 2023 to a $1 following a Hindenburg Research short report in May 2023 that sent shares of Icahn Enterprises (IEP) tumbling.

Icahn Enterprises (IEP) is scheduled to report its Q3 results on Friday.