Southwest Gas Says Carl Icahn’s Board Plan Is No-Premium Takeover
(Bloomberg) -- Southwest Gas Holdings Inc. said billionaire Carl Icahn’s bid to replace its board of directors amounts to a no-premium takeover of the utility owner.
Southwest said it will review the 10 nominee directors formally proposed by Icahn, according to statement Monday. Icahn, who owns a 4.9% stake in the company, has been waging a battle against management at the Las Vegas-based company since it announced a $1.97 billion deal to buy pipeline operator Questar last month.
Icahn has offered to buy the remaining stock in Southwest Gas that he doesn’t already own for $75 a share, or about 5% above Monday’s closing price. Southwest recently rebuffed that offer and said it will appoint two new independent directors as well as a new chairman.
“The nomination of the Icahn slate is the latest step in Icahn’s efforts to take control of Southwest Gas without paying a control premium to Southwest Gas stockholders and otherwise pursue his self-serving agenda,” the company said in its statement.
The $75 offer “undervalues the company” and has no certainty of completion, Southwest said.
Southwest rose 2.5% to $71.28. The company’s shares have risen 17% so far this year.
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