02:48 PM EDT, 08/02/2024 (MT Newswires) -- The list of bidders for Houston-based oil refiner Citgo Petroleum has narrowed down to CVR Energy ( CVI ) and a group of creditors that includes miner Gold Reserve, Reuters reported Friday, citing three people familiar with the matter.

CVR Energy ( CVI ), which is controlled by activist investor Carl Icahn, has made an all-cash bid of about $8 billion, according to people with knowledge of the auction, Reuters reported.

That compares with the $9 billion in combined cash and claims against Venezuela being offered by the investment group, Reuters reported, citing two of the people familiar with the matter.

Both offers fall short of the $21.3 billion creditors are looking to recover from the auction of the business and are also below Citgo's market valuation of between $11 billion and $13 billion, Reuters reported.

A winning bid must be selected by Aug. 22 and approved by Oct. 15, Reuters reported.

A court ordered the sale of PDV Holding, which owns Citgo, as compensation for the country's past expropriations and debt defaults. Despite being owned by Venezuela, Citgo is no longer tied to the country after it severed ties with its ultimate parent PDVSA and began operating under a US license, according to the report.

CVR Energy ( CVI ), Gold Reserve, and Citgo did not immediately respond to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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