Southwest Gas rejects Icahn's raised takeover offer as undervalued

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Southwest Gas Holdings (NYSE:SWX) says its board unanimously rejected Carl Icahn's increased $82.50/share offer, calling it "inadequate, structurally coercive, highly conditional, undervalues the company, and is not in the best interests of all of its stockholders."

Icahn Enterprises (NASDAQ:IEP) earlier this month raised its hostile tender offer for Southwest to $82.50 from $75/share; Southwest Gas shares closed Friday at $79.09.

Southwest recommends its shareholders not tender any shares into the offer and says its planned Centuri spinoff would unlock value for shareholders.

Icahn has launched a proxy battle seeking control of Southwest's board, with a shareholder vote scheduled May 12; Icahn has said the company could be worth $110-$150 per share if his slate of board nominees is elected.