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Technology Stocks : XO Holdings, Inc. (XOHO - XO Communications) -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (537)	3/6/2010 4:21:27 AM
From: tech101	1 Recommendation Read Replies (1) \| Respond to of 615

Carl Icahn is the chairman and majority XO shareholder of XO and owns 90+% of XO debts. He then manipulates the firm/board and forces through the increase of ownership to higher than 80% in order to take the $3.1 billion NOLs through preferred/convertible stock offers. R2 and other XO minority shareholders are suing Icahn for refusing to refinance when money was so easily available; also Icahn ignored much higher multiple offers from several qualified acquirers during the past two years; Because of these, Carl Icahn's Preferred B cannot be allowed to convert according to the lawsuit. There is $240 million Preferred A stock, mostly owned by CI, going to expire within a month, and Icahn may trying to increase his ownership again using the debt with minority shareholders at loss. However, if TWTC – a company in the same industry – can borrow money at very reasonable interest, it will be obvious to the judge that the market is good for telco companies like XO to refinance at good rates.