Carl Icahn discloses shares in Southwest Gas and urges company to cancel acquisition

Texas News Today

Carl Icahn gives a speech at Delivering Alpha on September 13, 2016 in New York.

David A. Grogan | CNBC

Carl Icahn announced a significant stake in Southwest Gas on Tuesday, and active investors are urging Las Vegas-based utilities to cancel the acquisition of rumored natural gas company Quaestar Pipeline. ..

“Over the years, SWX management has made many terrible mistakes at the expense of shareholders, but if you buy Kuesuta at a price you are willing to pay now, all mistakes in the past are yellow. In comparison, Icahn wrote in a letter to the Southwest Board of Directors issued Tuesday. “The acquisition would result in a serious decline in shareholder value.”

Shares of Southwest were up more than 7% in Tuesday afternoon trading. In his letter, Icahn said that the gas company did not respond to his question on the issue.

Southwest Airlines did not immediately respond to CNBC’s request for comment.

Icahn’s letter was released after Reuters reported that Southwest was in preliminary talks to acquire Questar, the transportation and storage business of Dominion Energy.

Warren Buffett’s Berkshire Hathaway was pursuing Quaestor last year, but the deal closed in July due to “continuing uncertainty associated with obtaining approval from the Federal Trade Commission”.

In a letter to the Southwest board, Icahn said he was “extremely disappointed” with management’s performance as a “major shareholder” over the years. He cited “weak ties with regulatory agencies,” runaway costs, and weak credit profiles.

Did you enjoy this article?
Exclusive Stock Selections, Investment Ideas, CNBC Global Live Stream
To apply CNBC Pro
Start Your Free Trial Now

Carl Icahn discloses shares in Southwest Gas and urges company to cancel acquisition

Source link Carl Icahn discloses shares in Southwest Gas and urges company to cancel acquisition

LEAVE A REPLY

Please enter your comment!
Please enter your name here