Southwest Gas in stand-off with activist investor Carl Icahn

Thursday, 13 January 2022
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Vegas-based Southwest Gas Holdings is rejecting continued attempts by activist investor Carl Icahn to buy up outstanding stock for $75 per share, calling the move opportunistic and not in the best interest of shareholders.

Icahn opposing the company’s October offer to pay nearly $2 billion to buy Dominion Energy’s Questar Pipeline. The move is intended to expand Southwest’s gas transport and storage opportunities in Colorado, Utah and Wyoming. However, Icahn’s corporate entity, IEP Utility Holdings LLC, has extended an expiration date to January 26, 2022, for its tender offer to buy up the outstanding Southwest Gas shares for $75 each in cash.

Rebuking the offer, Southwest Gas' Board of Directors called Icahn’s offer “structurally coercive, highly conditional and illusory tender offer.” It undervalues the company, has no certainty of completion and is not in the best interests of Southwest Gas stockholders, said Southwest which wants to go back to Dominion Energy’s agreement to o sell Questar Pipelines to Southwest Gas in a transaction valued at $1.97 billion after a previous sale to Warren Buffet’s Berkshire Hath-away Energy was cancelled. The pipeline sales deal includes the assumption of $430 million of existing Questar debts. 

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