Southwest Gas Jumps on Report Icahn Has Significant Stake By Investing.com
By Dhirendra Tripathi
Investing.com – Southwest Gas stock (NYSE:) rose 7% Tuesday on a report in The Wall Street Journal that Carl Icahn has a significant stake in the provider.
The Journal reports that the activist wrote to utility asking them to cancel a possible acquisition, and to instead focus on improving its share price.
The company currently pursues a $2 billion acquisition of Questar Pipeline Company. This is a Dominion Energy gas transport and storage business. According to Reuters, talks between both companies are in an advanced stage. The purchase price will include Questar’s debt. Dominion traded at 0.2% below its share price.
Icahn said the company’s shares, with the proper changes, could appreciate 75%, according to the WSJ report.
Southwest Gas has more than 2,000,000 customers across Arizona, Nevada, and California. Questar operates natural gas lines and storage networks in Colorado, Utah, Wyoming. According to Questar’s website, Clay Basin is also owned by the company. It is the Rocky Mountains’ largest underground storage repository.
Dominion and Southwest have proposed a deal after Warren Buffett’s energy arm Berkshire Hathaway abandoned its July pursuit of Questar (including debt) in fear that antitrust regulators might block it. Reuters stated that the deal was part of a bigger one to acquire Dominion’s infrastructure gas business.
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