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Icahn To Occidental Petroleum: Kick Out 4 Board Members, Change Company Charter

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Icahn To Occidental Petroleum: Kick Out 4 Board Members, Change Company Charter

Activist investor and Occidental Petroleum Corporation (NYSE: OXY) shareholder Carl Icahn wants the energy company to hold a special meeting to vote on board members and a change to in the company's charter, he said in a regulatory filing.

What Happened

Icahn owns around 4.5% of Occidental and has taken issue with the company's pending acquisition of rival energy company Anadarko Petroleum Corporation (NYSE: APC).

Icahn previously argued the $38-billion price tag on the acquisition is too high and the combination of the two is a dangerous proposition if oil prices fall.

The activist investor hopes to replace four Occidental board members. New board members are needed to "oversee future extraordinary transactions like the Anadarko transaction," Icahn said in the SEC filing. 

The board members will understand future large-scale deals are "not consummated without stockholder approval when appropriate," the activist investor said. 

Icahn also said changes are needed in Occidental's charters and bylaws to "remove the restrictive provisions that significantly impede the rights of stockholders to call a special meeting or to act by written consent."

Why It's Important

Icahn's latest moves shouldn't come as a surprise given the lawsuit he filed against Occidental in May and recent comments made in an unrelated business deal, according to CNBC.

"The recent Occidental Petroleum fiasco is a great example of how CEOs and boards will go to great lengths, including ‘betting the company' to serve their own agendas," Icahn said in a statement in which he was discussing the Caesars Entertainment Corporation (NASDAQ: CZR)-Eldorado Resorts Inc (NASDAQ: ERI) tie-up, CNBC reported. 

What's Next

In a statement, Occidental said it will review Icahn's letter, adding that it looks forward to "addressing them in our ongoing conversations" with shareholders.

In the meantime, the company remains focused on finalizing the Anadarko transaction in the back half of 2019 and said it will continue to "take actions to drive value" to benefit all shareholders.

Occidental shares were down 1.41% at $49.71 at the time of publication Thursday. 

Related Links:

Cramer Gives Thumbs-Down To Buffett's Involvement With Occidental Petroleum

Why Carl Icahn Is Suing Occidental Petroleum

Posted-In: Carl Icahn CNBC energy OilM&A News Media Best of Benzinga

 

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