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Icahn Takes Stake in Occidental amid Bidding War for Anadarko

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Icahn’s investment in Occidental Petroleum

As reported by CNBC, billionaire investor Carl Icahn has built a small stake in Occidental Petroleum (OXY) amid OXY’s bidding war for Anadarko Petroleum (APC). Occidental has already bid $38 billion for Anadarko and is locked in a bidding war with Chevron (CVX). According to people familiar with the matter, Icahn hasn’t yet decided whether to push for any changes at the company. The size of Icahn’s stake is also not clear yet.

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Activist investor

Icahn is an activist investor and is known to push for changes after acquiring a stake in a company. Icahn controls ~18% of Caesars Entertainment (CZR), and the investor has been continually pushing the ailing company for a turnaround and an eventual sale. Caesars had emerged from bankruptcy in October 2017 after it had piled on $24 billion in debt.

Berkshire Hathaway’s investment in Occidental

On April 30, Berkshire Hathaway (BRK-B) announced that it would inject $10 billion in Occidental Petroleum. The investment would be contingent on Occidental Petroleum’s proposed acquisition of Anadarko Petroleum. In his interview with CNBC on May 3, Warren Buffett said he was willing to invest $20 billion in Occidental to help it acquire Anadarko.

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