Shares of Delek US Holdings rose about 10 percent Wednesday after noted investor Carl Icahn named the three men he’d like to see take board seats and help force through big changes at the Brentwood-based company.
Icahn-controlled CVR Energy — an oil-refining peer to Delek with a slightly larger market value — last year said it wanted to buy Delek but a few weeks ago said it had shifted gears and now wants a board presence to push for a strategic overhaul. CVR controls 14.8 percent of Delek’s shares, the vast majority of which it acquired for an average price of a little more than $13. On Wednesday afternoon, Delek stock (Ticker: DK) was changing hands around $21.75. Its 52-week range is $7.79 to $29.49.
The director candidates being proposed by CVR are:
• Robert Edward Kent Jr., who has more than 40 years of experience in petroleum refining, including as president of REK Energy and a vice president of several Citgo divisions and as a board member of family-owned Sinclair Oil
• George Damiris, a former CEO of Fortune 500 refining company HollyFrontier, where he spent a dozen years in various roles after spending nearly two decades at Koch Industries
• Randall Balhorn, who has been VP of business development at energy infrastructure specialists US Development Group since late 2015 and before that co-founded distribution and marketing venture Cogent Energy Solutions
Delek directors on Wednesday played their cards close to the vest. Saying it regularly reviews opportunities to create and deliver value for investors, the local company’s board said its nominating and governance committee will “process CVR's submission, evaluate CVR's nominees, and make a recommendation in due course.”
Delek hosted its 2020 annual shareholders’ meeting in early May.