By Denny Jacob
Icahn Enterprises said it wants to acquire additional shares of CVR Energy's stock and will cut its dividend in half, confirming an earlier report by The Wall Street Journal.
The company founded by activist investor Carl Icahn on Friday said it delivered a proposal to CVR's board to acquire more shares through a tender offer. It proposed acquiring up to 15 million additional shares at a price of $17.50 a share.
Shares of CVR closed down 4.7% at $16.52 on Thursday, and were up 2.9% at $17 in premarket trade.
Icahn Enterprises, known by its ticker symbol IEP, already owns about 66% of CVR's shares outstanding, according to the Journal.
IEP said it was proposing its tender offer because it believes CVR's shares are undervalued and represent an attractive investment opportunity.
IEP added that to fund its investment in CVR and additional opportunities, and to maintain its war chest, it will cut its quarterly dividend to 50 cents from $1 a share. Icahn's firm cut its quarterly dividend to $1 a share after a short-seller report took on his publicly traded vehicle last year.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
November 08, 2024 07:18 ET (12:18 GMT)
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