Billionaire investor Carl Icahn was sued by pension funds, accusing the major shareholder of CVR Energy Inc. (CVI) of freezing out minority shareholders and seeking to bar him from accumulating more shares.
Icahn’s attempt to gain a 90 percent share of CVR, a level necessary to forcibly acquire remaining shares through a short- form merger, will result in CVR’s shareholders’ being “squeezed-out of their investment,” according to the complaint made public today in Delaware Chancery Court.
The plaintiffs are the City of Tamarac Firefighter Pension Trust Fund and the City of Miami General Employees’ and Sanitation Employees’ Retirement Trust.
CVR’s board has done nothing to protect shareholders, lawyers for the pension funds said.
“The cure is simple — adopt a poison pill that forces Icahn to negotiate a buyout price rather than allow him to conduct an open market scheme to game Delaware law,” the funds said in the complaint.
Icahn couldn’t immediately be reached for comment on the lawsuit. A phone message left for his assistant wasn’t immediately returned.
The case is City of Tamarac Firefighter Pension Trust Fund v. Icahn, CA7597, Delaware Court of Chancery (Wilmington).