Kerr-McGee reacts to Icahn's plan
Wednesday, March 9th 2005, 10:57 am
By: News On 6
OKLAHOMA CITY (AP) _ The board of Oklahoma City-based Kerr-McGee is endorsing a part of a plan recommended by the company's new largest stockholder, Carl Icahn.
But the board is rejecting other parts of Icahn's proposals, including nominating himself to the company board.
The directors support proposals to sell or spin off is chemical operation and to buy back up to one (b) billion dollars in company stock.
But they're saying no to a recommendation the company sell up to 32 percent of its future oil production in advance.
The board says such a sale would not leave the company with enough money to complete its existing drilling program and that the move would hurt credit ratings.
The company also opposes Icahn's nomination of himself and an associate to Kerr-McGee's board and is urging shareholders to re-elect the existing directors.