Carl Icahn speaking at the Delivering Alpha conference in New York, September 13, 2016
David A. Grogan | CNBC
Aikan, critical of Occidental outbidding Chevron in a deal to buy Anadarko Petroleum in May 2019 with $10 billion in funding from Warren Buffett, campaigned for nearly a year to fire CEO Vicki Hollub as Occidental shares plunged into March 2020, allowing Icahn to increase his stake to 10% from 2.5%, according to the magazine.
Occidental shares are now more than five times up in value as they fell below $10 a share in 2020, largely thanks to the recent rise in oil prices. Its shares closed Friday at $56.15 a share; that’s slightly lower than they were before the Anadarko deal was finalized, according to the magazine.
Icahn has recently reduced his position at Occidental and sold the remainder in recent days, according to a letter Icahn sent to Occidental’s board of directors on Sunday. The letter notes that two of Icahn’s representatives on Occidental’s board of directors will also step down, as required by the settlement agreement he struck with the company two years ago this month.
The magazine, citing sources “familiar with the matter,” reports that Icahn made a profit of around $1 billion from Occidental’s investment. Meanwhile, Buffett has recently been buying Occidental. As of Friday, Buffett’s Berkshire Hathaway said it owns about $5 billion worth of Occidental stock.
Recently, Icahn has been focusing on the small utility company Southwest Gas, according to the magazine. Last week, the energy company announced plans to spin off a subsidiary that Aikan called for a sale.
For more information, read the full Wall Street Journal report here.