It's safe to say, Carl Icahn is not a supporter of Occidental Petroleum Corp.'s $ 38 billion deal to buy Anadarko Petroleum Corp.
In a scary, open letter to the Occidental shareholders Monday, billionaire activist investor Chief Executive Vicki Hollub said was pulled by Warren Buffett.
“Buffett took her figuratively to cleaners. . . . The Buffett deal was like taking candy from a baby, and amazingly she thanked him publicly for it! "
In may, Occidental
OXY, + 0.34%
announced the agreement for Anadarko
APC, + 0.35%
outbid Chevron Corp.
CVX, [0.2459012] + 0.22%
. The deal included $ 10 billion in funding from Buffett's Berkshire Hathaway Inc.
Buffett will receive 100,000 preferred shares with a liquidation value of $ 100,000 per share, along with a guarantee to buy up to 80 million shares in Occidental Common shares worth around $ 1.2 billion as part of the deal.
Icahn has argued that the acquisition vastly overestimates Anadarko, was quickly put together and is extremely risky for shareholders. Icahn owns a stake in Occidental worth around $ 1.7 billion. He has started a proxy battle against the oil company and seeks to replace four directors.
Icahn said in Monday's letter that Hollub has "limited M&A experience" and wrote: "I think Hollub learned that negotiating a deal with Buffett, one of the country's canniest operators, is not the optimal way to get M & amp; A-experience. ”
Read: Berkshire Hathaway wins in the Occidental deal. It's classic Warren Buffett
" But you can't blame Warren if Hollub was arrogant enough to negotiate a agreement with Buffett of this magnitude despite the fact that despite the limited experience in M&A and the board was misleading to rubber stamp it, then in the defense of the Armed Forces can say that it was almost his trusting duty to Berkshire Hathaway to accept it, " Launched Icahn.
Occidental sent the shareholders a referral letter Monday, and urged them to reject Icahn's directors. "MR. Icahn's own statements show that he does not understand or support the strategic and economic benefits of the acquisition, "the letter said," and we believe his board members would interfere with our ability to succeed. . . deliver full promise of this acquisition. "
Occidental shares have declined 17% over the past three months and are down around 14% the year before, compared to the S&P 500's
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19% gain this year.