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FirstEnergy Reaches Deal to Give Carl Icahn Two Board Seats

Published by

July 26, 2024
(GMT+2)

FirstEnergy Corp. reached a deal with Carl Icahn that will give him two seats on the Ohio utility’s board and avert a potential proxy battle as the company seems to place a bribery scandal behind itTwo employees of the billionaire activist’s firm, Jesse Lynn and Andrew Teno, will join FirstEnergy’s board and serve on committees focused on supporting the company in improving its compliance and settling litigation, the company said on Tuesday. The agreement, which was reported earlier Tuesday by the Wall Street Journal, would expand the board to 14 directors.Mr. Icahn, who hasn’t disclosed his stake size, controls well over 3% of the company’s shares, according to people familiar with the matter. That makes him one of its top five holders with a stake worth more than $600 million. FirstEnergy, based in Akron, Ohio, provides electricity to roughly six million clients in a handful of states including Ohio, Pennsylvania and West Virginia. It has a market value of more than $19 billion. Last year, the company’s stock dived and it fired a few high-ranking executives following an internal review related to government investigations of its potential role in an alleged state-bribery scandal.

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