Southwest Gas adopts poison pill in bid to thwart Icahn
Oct. 11, 2021 10:03 AM ETSouthwest Gas Holdings, Inc. (SWX)By: Carl Surran, SA News Editor6 Comments
- Southwest Gas (SWX +0.3%) says it has adopted a shareholder rights plan designed to reduce the likelihood that any person or group would gain control of the company through the open-market accumulation of shares.
- The move is clearly directed at activist investor Carl Icahn, who opposes Southwest Gas' potential $2B deal to buy Questar Pipelines from Dominion Energy.
- Icahn, who disclosed a 4.9% stake in Southwest Gas last week, said the acquisition was too expensive and that the company should focus on improving its share price instead.
- In its plan, Southwest Gas says shareholders rights will become exercisable after a group buys more than 10% of its outstanding common stock.
- Southwest Gas "remains a Buy for income seekers based on its secure dividend and current undervaluation," George Fisher writes in a bullish analysis posted this summer on Seeking Alpha.