NEW YORK (AP) -- Shares of CVR Energy Inc. dipped slightly Friday after the Texas oil refiner rejected a $2.6 billion hostile takeover bid from billionaire investor Carl Icahn.
CVR, based in Sugar Land, Texas, said that Icahn's offer undervalues the company, doesn't protect investors from future debt, and contains too many provisions that would allow Icahn to back out of the deal.
"We believe the Icahn offer is an opportunistic attempt by Mr. Icahn to acquire CVR Energy at an inadequate price," CVR's board told investors Thursday in a letter.
Icahn recently offered $30 per share for the company. At the time, it represented an 8.7 percent premium over the company's stock price. The premium has since fallen to about 8.1 percent.
As part of his offer, Icahn said he would replace the nine directors on the company's board. New directors would be expected to eliminate CVR's "poison pill" measure that would thwart attempts to prevent a sale of the company. Icahn's tender offer is contingent on those replacement directors being seated.
CVR also owns a nitrogen fertilizer maker called CVR Partners, L.P.
Company shares fell by 10 cents, or less than 1 percent, to $27.65 in morning trading.