Reuters: Private Equity: Icahn says sale of CVR Energy will not be easy

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Icahn says sale of CVR Energy will not be easy Mar 19th 2012, 14:37 March 19 | Mon Mar 19, 2012 10:37am EDT March 19 (Reuters) - Billionaire investor Carl Icahn, who wants to buy CVR Energy Inc and then sell it, said a sale of the crude oil refiner "will not be easy." CVR, which has its refineries near Cushing, Oklahoma crude delivery hub, enjoyed strong margins in the last one year as an oversupply in the region allowed the company to pay lower prices for the oil it refines. The glut, however, is expected to ease as more pipelines are being built to ship crude from the Midwest to refineries in the Gulf Coast. "After making a number of preliminary inquiries to prospective strategic buyers, I realize a sale will not be easy," Icahn wrote in an open letter to CVR's shareholders. Icahn, CVR's top shareholder, had on Friday extended his $30 per share tender offer by 10 days, citing feedback from certain large shareholders of the oil refiner. Earlier this month, he had said some potential buyers he had spoken with were not prepared to acquire CVR. He had named Valero Energy, Western Refining , HollyFrontier Corp, Tesoro Corp, Marathon Petroleum Corp or ConocoPhilips among potential buyers. On Monday, Valero said it will suspend operations at its 235,000 barrel-per-day refinery in Aruba as inadequate margins resulted in financial losses. Refining margins for many East Coast and European refiners have been hit by sluggish oil demand growth in the United States and Europe, coupled with growing competition from Asian refineries. They were also hurt by refining expensive Brent crude. CVR Energy shares were marginally up at $27.14 on Monday on the New York Stock Exchange. Link this Share this Digg this Email Reprints

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