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Icahn Agrees to Sell Oil and Gas Unit to Riata

September 08, 2006|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.

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