Carl Icahn Makes Winning Bid for CVR Energy

It was revealed on Monday that billionaire investor Carl Icahn successfully bid for CVR Energy

with an offer valuing the company at $2.6 billion. The majority of CVI shareholders have now agreed to sell Icahn their stakes. That deal will make Icahn the largest shareholder at CVI with 69% of the company following his $30 per share offer. And it gets better for shareholders, as they could get up to $7 more per share if Icahn is able to sell the Sugar Land company. The CVI board may have vehemently opposed Icahn's offer, but that proved to be counter-productive when faced with mass shareholder approval. Icahn, ever the wheeler-dealer, is looking to sell the company on, roughly two months after the purchase, hence the board's reticence. Icahn has not been slow to criticize the CVI board and has been urging a sale for some time. According to a May 1 statement, the company made a 1Q loss of $25.2 million, or 29 cents per share, compared with income of $45.8 million, or 52 cents per share, a year earlier. However you look at it, that's a startling change of fortunes that would appear to prove Icahn's complaints to be true. Overall, CVR has a solid underlying business. And from the quantitative perspective, the company is currently undervalued, it's a safe long-term value investment. However, the acquisition and re-sell events will generate volatility to its share price. Share price will be very volatile in the next six months.