HOUSTON (Reuters) – Activist investor Carl Icahn on Thursday formally launched a proxy fight in opposition to Occidental Petroleum (OXY.N) to win management of 4 board seats, in accordance with a regulatory submitting, after talks with the oil firm’s chief govt failed to succeed in an settlement.
FILE PHOTO: Billionaire activist-investor Carl Icahn provides an interview on FOX Business Network’s Neil Cavuto present in New York February 11, 2014. REUTERS/Brendan McDermid/File Photo
Icahn, who owns four.four% of Occidental shares, final month stated he deliberate to launch a proxy fight to oust and change 4 Occidental administrators. Icahn has blasted the Houston-based oil and fuel producer for failing to offer homeowners a say on its proposed $38 billion acquisition of Anadarko Petroleum (APC.N), which he has referred to as “misguided and hugely overpriced.”
“Occidental refused to craft a compromise and so we’ll happily take our case to stockholders which the company should have done with this bet-the-company transaction,” Icahn informed Reuters on Thursday.
“We prefer to have peace and have a great record in reaching settlements,” Icahn added.
Occidental, whose board of administrators has 10 members, didn’t reply to requests for remark. In its personal current securities filings, the corporate referred to as the Icahn requests “not in the best interests of Occidental or its shareholders” and urged they not signal the solicitation.
In the proxy submitting with the Securities and Exchange Commission, Icahn recognized his 4 candidates for the board: John Hofmeister, the previous president of Shell Oil Company; Alan LeFevre, the previous finance chief of shopper items agency Jarden Corp; and Nicholas Graziano and Andrew Langham, two executives with Icahn’s personal funding firm.
Icahn spoke with Occidental CEO Vicki Hollub on July 10 in an 11th-hour effort to succeed in a compromise and avert a proxy fight. His associates additionally spoke with Occidental executives twice earlier this month, in accordance with the submitting.
If Icahn’s proxy solicitation is profitable in forcing a particular assembly of shareholders, the report date for a vote on the Icahn candidates might be scheduled as quickly as September or October.
Icahn expects to schedule conferences with Occidental shareholders within the subsequent 4 weeks to press the case for board seats. The proxy fight is unlikely to cease the Anadarko deal, however would affect the tempo and route of billions of of asset gross sales that may outcome after the acquisition closes.
Occidental has proposed promoting Anadarko’s Africa property, together with a proposed Mozambique liquefied pure fuel venture estimated to price $20 billion. Anadarko additionally owns vital offshore wells and manufacturing platforms within the U.S. Gulf of Mexico.
Freeport-McMoRan, which in 2016 bought a few of those self same offshore property to Anadarko, did so whereas beneath strain from Icahn’s funding fund, which held seats on the mining agency’s board.
Anadarko shareholders are anticipated vote in favor of the Occidental deal Aug. eight.
Reporting by Gary McWilliams; Editing by Leslie Adler