Icahn-Backed Refiner Assails Rival: ‘What do You Have to Hide?’

Carl Icahn’s CVR Energy Inc. intensified pressure on rival oil refiner Delek US Holdings Inc. for details on CEO Ezra Uzi Yemin’s pay package and ownership stake in a subsidiary.

In an open letter to Delek’s chief executive with the subject “You Can Run But You Can’t Hide,” CVR lambasted Yemin for withholding internal documents and deploying a team of lawyers to combat Icahn’s efforts to obtain them. The letter also questioned why and how Yemin was granted a 5% stake in Delek’s logistics unit.

“The immortal Joe Louis famously said about an opponent, ‘he can run but he can’t hide,’” CVR CEO David Lamp wrote in the letter. “And Mr. Yemin, you can’t hide here. You are going to have to face your stockholders whether you like it or not.”

Icahn is majority owner of CVR, which has a 15% stake in Delek that makes it the company’s top shareholder. Delek didn’t immediately respond to a comment request.

The tone of Icahn’s campaign against Yemin and Delek’s board has only escalated since it began in January with demands for a “new strategic direction.” That initial letter from Lamp proposed replacing three Delek directors with CVR nominees -- which Delek rejected.

Earlier this month, CVR demanded the right to inspect and make copies of internal documents outlining compensation and other payments made to Yemin as far back as 2012.

The latest missive from Icahn’s camp accuses Yemin of reaping $27 million from his stake in the subsidiary, in addition to $54 million in compensation from the parent company between 2013 to 2020. The letter also made reference to Delek’s “supposedly independent” directors that Yemin tends to “steamroll.”

“While the stockholders of Delek have suffered through a series of poor management decisions, you personally have done extremely well,” Lamp wrote. The documents CVR requested “would allow us to better understand why you were paid so much and why you received, and so greatly benefited from, the 5% interest.”

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