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Why Carl Icahn Is Suing Occidental Petroleum

Tanzeel Akhtar

Activist investor Carl Icahn is suing Occidental Petroleum Corp. (NYSE: OXY) over a "misguided" Anadarko Petroleum Corp (NYSE: APC) deal, according to Reuters reports.

What To Know

Occidental has acquired some of the richest shale oilfields and recently fought off rival Chevron Corp (NYSE: CVX) in a bidding war to acquire Anadarko Petroleum.

Icahn has built a $1.6-billion position in Occidental and may seek a "special meeting" to remove and replace board members over this deal, according to a lawsuit filed Thursday.

The lawsuit has been filed in Delaware by a group of Icahn companies and is calling Occidental's recent agreement to purchase Anadarko for $38 billion "fundamentally misguided and hugely overpriced."

What's Next

Reuters reported Icahn may seek a meeting of shareholders to remove and replace directors. He believes Occidental should have been a seller rather than a buyer in the current market.

Occidental's stock traded lower at $51.84 per share Thursday afternoon. Anadarko Petroleum was little changed at $71.23 per share.

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