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CVR Energy Adopts Stockholder Rights Plan

CVR Energy Inc. (CVI: Quote) Friday said its Board adopted a Stockholder Rights Plan, designed to allow the Board adequate time to consider any and all alternatives that are presented. The rights initially would trade with the company's common shares, and would only become exercisable if a person or group acquires beneficial ownership in the company of 15 percent or more of its common stock in a transaction not approved by CVR Energy's Board of Directors.

Any person or group holding existing positions of 15 percent or more at the time of the announcement of the Rights Plan would be grandfathered and exempt from the Rights Plan.

However, any additional acquisitions of common shares (other than pursuant to a dividend or distribution paid or made by the company or pursuant to a stock split or reclassification) by such person or group would cause the rights to become exercisable.

The Rights Plan will expire on December 31, 2012, and may be redeemed at any time by the Board of Directors prior to that date.

In a filing, Icahn Enterprises L.P. (IEP) had disclosed the acquisition of 12.6 million shares of CVR Energy, representing about 14.54 percent of the outstanding shares.

Earlier Friday, in a statement on investment by Carl Icahn, CVR Energy's Chief Executive Officer Jack Lipinski, said," We appreciate Mr. Icahn's interest in CVR Energy and his shared view that the company is a valuable investment opportunity. We welcome the views of all of our shareholders and routinely consider their thoughts on business and strategy as we pursue our common goal of increasing shareholder value."

CVI closed Friday's regular trade at $23.05, up $0.80 or 3.60%, on the NYSE. In the after-hours, the stock gained $0.70 or 3.04%.

by RTT Staff Writer

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