Billionaire investor Carl Icahn is seeking to replace four directors at Occidental Petroleum Corp., saying the company’s board mismanaged its $38 billion deal to buy Anadarko Petroleum Corp.
The company’s pending deal revealed a lack of “effective corporate governance,” and it needs new directors to ensure the acquisition realizes its cost savings, Icahn said in a securities filing.
Icahn — who disclosed he holds $1.6 billion in Occidental shares, or nearly 5% — asked other shareholders to request that Occidental OXY, +2.11% set a date to consider his proposal, which he said was a necessary first step in the process to nominate new directors.
In a lawsuit Icahn filed against Occidental in May, he said the Anadarko APC, +0.57% deal is “hugely overpriced” and that Occidental lined up expensive financing to consummate it, putting the company at risk if oil prices fall. The lawsuit argued Occidental should explore selling itself, saying that it would be in the best interest of shareholders.
An expanded version of this report appears on WSJ.com.
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