August 21, 2012 / 9:12 PM / 5 years ago

Icahn pulls offer for rest of CVR, shares drop

(Reuters) - Carl Icahn has withdrawn his $29-per-share offer to buy the remaining shares of U.S. oil refiner CVR Energy (CVI.N) that he does not already own, the billionaire investor said on Tuesday, and the stock fell 3 percent in trading after the close.

Icahn, who controls about 82 percent of CVR’s outstanding shares, acknowledged in a letter to CVR filed with securities regulators that he had been unwilling to consider paying more than $30 per share as of August 6.

“Since then a number of market conditions have changed, including a significant widening of crack spreads (refining margins),” he wrote. “We no longer think that the proposed transaction is feasible at this time and we hereby withdraw it.”

Icahn, who got control of CVR through a $30 per share tender offer, earlier tried to find a buyer for CVR, insisting he would not settle for an offer below $35 per share in cash.

He had named Valero Energy Corp (VLO.N), Western Refining Inc WNR.N, HollyFrontier Corp (HFC.N), Tesoro Corp TSO.N, and Marathon Petroleum Corp (MPC.N) as possible buyers.

CVR, based just outside Houston in Sugar Land, Texas, operates refining plants in Kansas and Oklahoma with processing capacity of more than 185,000 barrels of oil equivalent per day.

It also transports fuels to customers through tanker trucks and pipeline terminals and has a crude oil gathering system serving Kansas, Oklahoma, western Missouri, southwestern Nebraska and Texas. In addition, it has a stake in fertilizer producer CVR Partners LP (UAN.N).

Shares of CVR were trading down 3.1 percent at $28.64 in after-hours trading on Tuesday.

Reporting by Braden Reddall in San Francisco, editing by Gary Crosse

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