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Occidental Reportedly Nears Truce With Carl Icahn

Occidental Petroleum Corp. is nearing a truce with activist investor Carl Icahn that will see three new directors appointed to the oil company's board, according to the Wall Street Journal reported citing people familiar with the matter. A deal could be announced as soon as Monday.

Icahn associates, Andrew Langham and Nicholas Graziano, would receive seats on Occidental's board. A third, mutually-agreed upon director would later be added, the report said. Herbalife Nutrition board member Margarita Palau-Hernandez is someone who is being discussed for the third director.

As part of the deal, Icahn reportedly support the return of Occidental's former Chief Executive Officer Stephen Chazen as chairman. Vicki Hollub likely would remain CEO of the company.

Icahn, who owns about 10% of Occidental's shares, has criticized Hollub for the Anadarko Petroleum acquisition.

Earlier this month, Occidental Petroleum adopted a limited duration stockholder rights plan and declared a dividend of one "Right" for each outstanding share of Occidental common stock. A stockholder rights plan, colloquially known as a "poison pill", is a type of defensive tactic used by a corporation's board of directors against a takeover.

Occidental said it would reduce quarterly dividend and 2020 capital spending, due to the sharp decline in global commodity prices.

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