Icahn Seeks Control of Southwest Gas after It Proceeds with Questar Pipelines Acquisition

Activist investor Carl Icahn said he worries Southwest Gas will issue stock at “ridiculously low prices to ‘cherry picked’ friends who will be blindly supportive of CEO John Hester.”

Svea Herbst-Bayliss, Reuters

Carl Icahn on Oct. 14 said he was trying to gain control of Southwest Gas Holdings’ board and replace its CEO, as the Nevada utility is moving forward with a planned acquisition that the billionaire activist investor says hurts shareholders.

“We are today announcing our intention to launch a proxy contest to replace the entire board and commence a tender offer for any and all common shares at $75 per share in cash,” Icahn wrote to the Southwest board in an open letter.

The stock price closed at $69.49 on Oct. 14.

In a statement late on Oct. 14, Southwest said the board will review the offer when Icahn Enterprises presents it.

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