Investor Carl Icahn now holds about 80% of oil refiner and fertilizer maker CVR Energy Inc. (NYSE: CVI). Icahn held about 69% of the company before the close of his extended tender offer last Friday.
Icahn’s offer of $30/share for CVR’s two refineries and majority stake in fertilizer maker CVR Partners L.P. (NYSE: UAN) also includes a contingency payment if he is able to sell the company’s bits for more than that. The two refineries are relatively small, totaling about 185,000 barrels/day together, and are not likely to fetch much more than $200-$250 million. The value will be in the crude stocks, and that’s been dropping every day for more than a month now. The fertilizer operation is solid, but small.
Don’t be surprised if Icahn holds on to CVR for longer than many people expected. The value is in the crude and he can probably afford to wait for the price to go back up.
Paul Ausick
Are You Ahead, or Behind on Retirement? (sponsor)
If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention.
Finding a financial advisor who puts your interest first can be the difference between a rich retirement and barely getting by, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been carefully vetted, and must act in your best interests. Start your search now.
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.