Icahn Agrees to Sell Oil and Gas Unit to Riata
From Bloomberg News
Investor Carl Icahn agreed to sell the oil and natural gas unit of his American Real Estate Partners to Riata Energy Inc. for $1.5 billion in cash and stock, 10 times what he paid for the business three years ago.
Riata, an Oklahoma City-based oil and gas producer, said in a statement that it would issue 12.8 million shares at $19 each and pay $1 billion in cash. Riata’s purchase option expires in 70 days.
Icahn bought Dallas-based NEG Oil & Gas in October 2003 for $148 million in cash. Riata would also assume $300 million in debt and receive $50 million in cash, the statement said.
