13-d
CVR Energy: Icahn spoke with mgmt and told them CVI would be better served if it commenced a process to put itself up for sale – amended 13D filing (26.96)
On February 13, 2012, Carl C. Icahn and other representatives spoke with Jack Lipinski, the Chairman, Chief Executive Officer, and President of CVI, and discussed the initiatives announced on February 13th. Icahn stated that they believed that shareholders would be better served if CVI commenced a process to put itself up for sale, rather than pursue the limited initiatives announced by the co. Icahn believes that CVI’s stock price does not reflect current high crack spreads. CVI is a small company with only two refineries. As a result, shareholders face an unfavorable risk reward ratio since they bear not only the risk of a decline in crack spreads, but also the risk of production interruptions which would reduce the upside from high crack spreads. Icahn expressed their belief that there are three or four possible acquirers that could benefit greatly from the synergies that could be realized from a combination with CVI and that are better positioned to hedge currently high crack spreads. Mr. Lipinski stated that he would take the Icahn’s suggestions under advisement and discuss them with his board of directors and advisors.
