RTTNews | Oct 5, 2021 05:09PM EDT

17:09 Tuesday, October 5, 2021 (RTTNews.com) - Activist Carl Icahn on Tuesday said that he had a large stake in Las Vegas-based utility company Southwest Gas Corp. (SGX) and asked the company to stop its alleged acquisition of natural gas company Questar Pipeline.

In a letter addressed to the Southwest Board of Directors, Icahn said, "During the past few years, management of SWX has made a number of egregious errors at the expense of shareholders. However, the purchase of Questar you are currently being rumored to make at the price you are willing to pay will make all past errors pale in comparison. The purchase will result in serious diminution of shareholder value."

Icahn's letter came in the backdrop of news that Southwest Gas has almost finalized the deal to Questar, which Dominion Energy's transportation and storage business.

In his letter, Icahn expressed "extreme disappointment" with the way the company management was handling matters over the last few years as he was a "large shareholder. The problems he raised about the company include "debilitated relationship with regulators," higher expenses and a weak credit profile.

Questar Pipeline was going to be bought by Warren Buffett's Berkshire Hathaway in 2020 but the agreement fell through due to "ongoing uncertainty associated with achieving clearance from the Federal Trade Commission."

Read the original article on RTTNews ( https://www.rttnews.com/3230650/carl-icahn-unveils-stake-in-southwest-gas-opposes-questar-pipeline-acquisition.aspx)

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