Icahn is planning to increase his stake in CVR Energy (CVI.US), saying the stock is undervalued.
Carl Icahn's company Icahn Enterprises (IEP.US) confirmed on Friday that it plans to increase its stake in CVR Energy (CVI.US) by more than 20%. Shares of CVR Energy rose nearly 7% before the market opened on Friday.
Icahn Enterprises said it would launch a tender offer to acquire an additional 15 million shares of CVR Energy common stock at $17.50 per share. The company believes CVR Energy's stock is undervalued and presents an attractive investment opportunity. Data shows that Icahn Enterprises currently owns 66.3% of CVR Energy's outstanding shares.
Moreover, Icahn Enterprises fell nearly 11% before the market opened on Friday. The company's earnings report showed that its third-quarter revenue declined 7% year-on-year to $2.79 billion; its earnings per share were $0.05, lower than the market's expectation of $0.21. The company also announced a 50% cut in its quarterly dividend to $0.50 per share.