Stock Groups

Icahn reportedly sells off Occidental Petroleum stake after almost 3 years


Delivering Alpha New York, September 13th 2016, Carl Icahn

David A. Grogan | CNBC

Icahn criticizes Occidental for outbidding ChevronIn May 2019, Anadarko Petroleum was purchased with financing of $10 billion. Warren Buffett, had been campaigning for the ouster of CEO Vicki Hollub for almost a year when Occidental’s shares plunged in March 2020 — allowing Icahn to boost his stake to 10% from 2.5%, according to the Journal.

Now, Occidental shares are surging. They have more than quadrupled in value, having dropped below $10 per share in 2020. This is largely due to recent increases in oil prices. According to The Journal, Occidental’s shares ended Friday closing at $56.15 per share. This is just below the level they reached before the Anadarko deal.

According to Occidental’s board letter, Icahn wrote that Icahn had been reducing his position in Occidental recently and that he has sold most of the remaining shares in recent days. Two of Icahn’s representatives on the Occidental Board will also resign as per the request by a settlement agreement He had made contact with the company almost two years before this month.

The Journal reported that Icahn had made around $1 billion profit on his investment in Occidental. Buffett has also been purchasing Occidental in recent months. Buffett was still alive as of Friday. Berkshire Hathaway Reports of owning roughly $5 billion worthStock of the Occidental.

Icahn, late, has been solely focused on smaller utility company Southwest Gas, according to the Journal. According to the Journal, last week, Icahn’s energy firm declared plans to disintegrate its subsidiary. 

You can read more about the Wall Street Journal’s report here here.