Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, February 11, 2015

SEC probes disclosures tied to Icahn takeover of CVR - US filing, (NYSE: CVI)

The U.S. Securities and Exchange Commission is investigating whether CVR Energy Inc might have made misleading disclosures to investors during its unsuccessful defense against billionaire Carl Icahn's 2012 hostile takeover, court documents show. According to a filing with the U.S. District Court in Manhattan late Tuesday, the SEC is examining whether CVR properly characterized the fees it agreed to pay financial advisers Goldman Sachs and Deutsche Bank, to help defend against Icahn's tender offer.The SEC probe was made public in a letter from Herbert Beigel, a lawyer for CVR and Icahn.It was filed as part of lawsuit in which CVR, now controlled by Icahn, accused law firm Wachtell, Lipton, Rosen & Katz, which had defended CVR, of malpractice for failing to disclose that Goldman and Deutsche Bank stood to earn far higher fees if a takeover defense failed than if it succeeded.Beigel said the SEC probe began last year, and that the agency recently advised CVR it "intends to expand its inquiry."

CVR Energy, Inc. (CVR Energy), through its wholly owned subsidiaries, acts as an independent petroleum refiner and marketer of transportation fuels in the mid-continental United States. Shares of CVI fell by 0.34% or $-0.14/share to $40.55. In the past year, the shares have traded as low as $33.02 and as high as $51.44. On average, 375174 shares of CVI exchange hands on a given day and today's volume is recorded at 205812.