Billionaire activist investor Carl Icahn ripped Occidental Petroleum Tuesday, criticizing the independent producer’s board, Kallanish Energy reports.
He criticized corporate boards in general that treat “shareholders [as] necessary peasants who represent a necessary evil that must be tolerated, possibly patronized, but certainly ignored.”
“The recent Occidental Petroleum fiasco is a great example of how CEOs and boards will go to great lengths, including ‘betting the company’ to serve their own agendas,” Icahn said, in a statement. “If their bet is successful, they and possibly their shareholders win, but if it is unsuccessful, only the shareholders lose.”
An Occidental shareholder, Icahn filed suit against the company earlier this year to protest its pending $38 billion acquisition of Anadarko Petroleum. Icahn asserts Occidental paid too much for its fellow producer and damaged shareholder value.
Occidental has rejected Icahn’s criticism, stating in May the deal was an opportunity to deliver value and returns to shareholders of both companies.
“Too many boards like Occidental’s believe they are unaccountable and cannot be removed, and therefore can do almost anything they please,” Icahn added. “This attitude is a major threat to the value of America’s companies, the stockholders of which are many middle Americans who have more of their savings invested in stocks than ever before.”
This post appeared first on Kallanish Energy News.