Carl Icahn Did Not Learn
Most minority shareholders are willing to share the legal costs should that happen.
However, many attorneys will be motivated to get a piece of the meal from the fat cat. Read the following:
lawyersandsettlements.com
Failed Business Sale
Wilmington, DE: (Apr-04-08) R2 Investments LDC brought a lawsuit against billionaire Carl Icahn, Chairman of Icahn's Elk Associates LLC, and XO Holdings Inc. XO, based in Herndon, VA, sells telecommunications services to business customers, including local and long-distance voice, data and Internet access, and has 6,700 miles of fiber-optic cable in 37 US cities.
The suit alleges that Icahn unfairly used his majority stake in the phone company to force the $700 million sale of its Web-access business to Elk Associates LLC., to allow the company to repay debt to another Icahn-related entity. Sources stated that the two parties agreed to resolve the dispute by entering into a settlement agreement.
Under the terms of the deal, DELAWARE CHANCERY JUDGE LEO STRINE JR. GRANTED SHAREHOLDERS' LAWYERS $8 MILLION TO COVER LEGAL FEES AND EXPENSES. Further, as part of the agreement, Icahn agreed to waive certain terms of XO Holdings' original $500 million senior secured term loan through the due date of July 15, 2009, and to reduce interest payments by about $9 million. [DELAWARE ONLINE: XO CAN SETTLE SUIT OVER FAILED SALE OF UNIT]
The Link to the SEC 8-K
sec.gov |
