- Carl Icahn has sold the last of what was once a 10% stake in energy company Occidental Petroleum, The Wall Street Journal reported.
- The sale ended an uneasy relationship between the billionaire activist investor and the oil-and-gas producer just as the latter's shares surge.
- The Journal reported that Icahn has realized a profit of some $1 billion on the Occidental investment, citing sources "familiar with the matter."
Carl Icahn has sold the last of what was once a 10% stake in energy company Occidental Petroleum, The Wall Street Journal reported, ending an uneasy relationship between the billionaire activist investor and the oil-and-gas producer just as the latter's shares surge.
Icahn, critical of Occidental's outbidding of Chevron in a May 2019 deal to buy Anadarko Petroleum with $10 billion of financing from Warren Buffett, had been campaigning for the ouster of CEO Vicki Hollub for almost a year when Occidental's shares plunged in March 2020 — allowing Icahn to boost his stake to 10% from 2.5%, according to the Journal.
Now, Occidental's shares are surging, more than quintupling in value since they sank below $10 per share in 2020, largely thanks to the recent rise in oil prices. Its shares closed Friday at $56.15 apiece; that's just below where they were before the Anadarko deal was finalized, according to the Journal.
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Recently, Icahn has been cutting his position in Occidental and he sold the rest of it in recent days, according to a letter Icahn sent to Occidental's board on Sunday. Icahn's two representatives on the Occidental board will also resign, the letter noted, as required by a settlement agreement he had reached with the company two years ago this month.
The Journal, citing sources "familiar with the matter," reports that Icahn has realized a profit of some $1 billion on the Occidental investment. Buffett, meanwhile, has been buying Occidental recently. As of Friday, Buffett's Berkshire Hathaway reported owning roughly $5 billion worth of Occidental stock.
Icahn of late has been focused on smaller utility company Southwest Gas, according to the Journal. Last week, the energy firm announced plans to separate a subsidiary Icahn had called for it to sell.
For more details, read the complete Wall Street Journal report here.