WSJ News Exclusive | Carl Icahn Holds Significant Stake in Southwest Gas, Opposes Planned Deal

Carl Icahn mentioned in a letter that shares of Southwest Gasoline, with the right modifications, may recognize 75%.


brendan mcdermid/Reuters

Carl Icahn

has a big stake in

Southwest Gas Holdings Inc.

SWX 6.58%

and is pushing the Nevada utility to desert a deliberate acquisition and give attention to enhancing its share worth as an alternative, he mentioned in a letter to the corporate this week.

The letter was despatched to Southwest’s board Monday, a day after a report that the corporate may full a deal to purchase

Dominion Energy Inc.’s

D -0.78%

Questar Pipeline Co. Southwest, which has a market worth of roughly $4.2 billion, agreed to purchase the corporate for $1.975 billion together with debt Tuesday afternoon.

Southwest’s shares closed up 7% at $70.42 Tuesday following the discharge of Mr. Icahn’s letter, which The Wall Road Journal reported on earlier that day. The shares traded for greater than $90 apiece two years in the past. The Las Vegas firm serves greater than two million clients in Arizona, Nevada and California.

Mr. Icahn, whose son Brett now works alongside him, mentioned within the letter that the acquisition of Questar for near $2 billion could be an enormous mistake and diminish shareholder worth.

“However even when you weren’t overpaying, that is no time for administration with the numerous issues you may have (together with with regulators) to embark on a significant new funding particularly when you may have proven an incapacity to handle and management what you already personal,” the octogenarian investor wrote. He mentioned within the letter he tried to succeed in the corporate and hasn’t heard again.

Southwest didn’t reply to a request for remark Tuesday. Dominion declined to remark.

Mr. Icahn mentioned the corporate’s shares have underperformed its regulated gas-utility friends, its bills have elevated and there was little turnover on its board.

Mr. Icahn mentioned with the right modifications, the corporate’s shares may recognize 75%. He mentioned he owned 4.9% of the corporate’s shares and extra when together with derivatives.

Warren Buffett’s

Berkshire Hathaway Inc.

had agreed to purchase Questar, a natural-gas pipeline firm that gives transportation and storage service, for round $1.7 billion together with debt. The events deserted the deal in July due to uncertainty over whether or not it could be cleared by regulators. Dominion mentioned on the time it was initiating a sale course of for Questar and aimed to shut a deal by the tip of the 12 months.

Mr. Icahn has agitated at other utilities, together with

FirstEnergy Corp.

earlier this 12 months. He now holds seats on the Ohio utility’s board.

Write to Cara Lombardo at [email protected]

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Appeared within the October 6, 2021, print version as ‘Icahn Opposes Southwest Gasoline Deal.’

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