Icahn Won’t Participate in ‘Rotten’ Southwest Gas Review

(Bloomberg) -- Billionaire Carl Icahn said he won’t participate in the strategic review process Southwest Gas Holdings Inc. recently initiated after the company received interest from a potential buyer that exceeded his bid.

Icahn “will not be a bidder” in the strategic review run by either the incumbent board or a new board he’s seeking to install, the activist investor said in a letter Thursday. Southwest’s claim that he wants to buy the entire company is wrong, he said, and his only goal is to replace the board. 

“To paraphrase the Bard, something is rotten in the state of Southwest Gas,” he wrote.

Icahn also questioned the “miraculous” timing of the emergence of a new potential buyer, a development he said was “barely credible news.” Southwest announced Monday it had received an indication of interest  that exceeded his offer of $82.50 per share.

Southwest reiterated in a statement Thursday that the goal of undertaking the review is to benefit shareholders, and that Icahn is encouraged to participate in any sale process. “The Southwest Gas board is focused on one thing only -– the maximization of value for Southwest Gas stockholders,” the Las Vegas-based company said. 

Icahn’s battle with Southwest dates to October when the company rebuffed his objections and moved forward with a $2 billion pipeline acquisition. Icahn has repeatedly slammed company executives for poor performance, while the utility has said his offer is inadequate. As part of his fight, Icahn has nominated a slate of directors to replace the entire board.

Southwest shares fell 0.2% to $89.59 at 2:51 p.m. in New York.

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