TMFBlacknGold (99.41)

What Does Icahn Mean for CVR Energy's Limited Partnership?

May 17, 2012 – Comments (0) | RELATED TICKERS: CVI , UAN

Does anyone know how Carl Icahn's takeover of CVR Energy (NYSE: CVI) affects CVR Partners LP (NYSE: UAN)?

I own UAN, but it has not garnered much attention in articles describing the takeover. Will it really be that difficult to sell with CVI's refinery? I figure that if a refiner such as CVI was willing to partake in the fertilizer business then a potential buyer won't really be deterred. Shouldn't that add value to the CVI refinery, which trades byproducts with the fertilizer facility?

I keep reading that UAN will have to be sold at a loss, or broken up, to make the deal with CVI work. I don't see how that makes much sense though. Anyone can look on the balance sheet and see that UAN is well above book value, but I don't think Icahn of all people will accept a low-ball offer, especially with the run urea-ammonium-nitrate prices have enjoyed.

My breakeven price is $20.46, so I have a comfortable safety net (although $28 per share was much better!). I am considering selling my position to get into VLCCF, which I see as a great value play. 

Any thoughts on the takeover? Any good value plays? Any and all comments are welcome.

(Also, why hasn't the Sandstorm Gold Ltd Com (NASDAQOTH: SNDXD.PK) split gone through the system yet? I am "down" 560 points because of the split!) 

BlacknGold