Carl Icahn rules out Southwest Gas Bid

Reuters, April 21 Following an unnamed potential buyer’s interest in Southwest Gas Holdings Inc (SWX.N), billionaire activist investor Carl Icahn said on Thursday he had no interest in bidding for the utility.

Southwest’s shareholders were told Icahn’s “only interest is to replace the current board of directors”.

Icahn said if his nominees were elected, they would keep looking for strategic alternatives for Southwest, but he would not bid for the utility.

The billionaire also questioned the credibility of the anonymous potential buyer Southwest revealed earlier this week.

“We started this process because we received an indication of interest well beyond Mr. Icahn’s $82.50 per share offer,” Southwest said Thursday.

Icahn is also encouraged to participate in the sale.

In October, Icahn tried to take over Southwest Gas’ board and replace its CEO after the company adopted a shareholder rights plan to stop his $2 billion takeover bid for Questar Pipelines.

The billionaire then launched a tender offer for Southwest stock, offering $82.50 per share to other shareholders. Southwest rejected Icahn’s bid in March as “inadequate.”