Realizing Investment Gains from Ukraine Crisis... Carl Icahn Sells 10% Stake in US Oil Company

Occidental's Stock Soars 45% Last Week... Buffett Recently Discloses Increased Investment

American activist investor Carl Icahn
[Photo by Reuters]

[Asia Economy Reporter Jeong Hyunjin] Carl Icahn, a U.S. activist investor known as a "corporate raider," has divested his stake in Occidental Petroleum, one of the largest oil companies in the U.S., the Wall Street Journal (WSJ) reported on the 6th (local time). The company's stock price surged significantly due to Russia's attack on Ukraine, prompting Icahn to exit his investment after three years to realize profits.

According to the report, Icahn sent a letter to Occidental's board on the same day, announcing the sale of his remaining approximately 10% stake. Icahn began investing in Occidental after criticizing its acquisition of shale company Anadarko for $38 billion (about 46.27 trillion KRW) in 2019. Subsequently, when global stock markets plummeted in March 2020 due to COVID-19, he increased his stake from 2.5% to 10%.

Bloomberg News reported, "Icahn disclosed holding a 6.94% stake in Occidental as of August last year, which dropped to 3.44% last week." It appears he has since sold all remaining shares.

Icahn also informed Occidental that two directors would resign. Previously, Icahn had demanded the resignation of CEO Vicki Hollub, who decided on the Anadarko investment in 2019. After increasing his stake, Icahn again called for the return of former CEO Steven Sazon and the replacement of three board members, including two directors he recommended. It was agreed that the board members would be replaced while CEO Hollub would remain.

The timing of Icahn's stake sale coincides with Occidental's stock price surge following Russia's airstrike on Ukraine. Occidental closed at $56.15 on the 4th, with its stock price rising more than fivefold from single digits in 2020. According to WSJ citing sources, Icahn appears to have realized a profit of $1 billion. Additionally, unrealized net gains of about $500 million remain.

Meanwhile, Warren Buffett, chairman of Berkshire Hathaway and known as the "Oracle of Omaha," recently disclosed holding 91.2 million shares of Occidental. Valued at $5.1 billion, the stock increased 18% in value on the 4th alone and 45% over the past week. CNBC explained that Buffett's stake in Occidental is about 9%, but considering his ownership of warrants, his effective stake could exceed 17%.