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Carl Icahn Likens Judge Saying He Owes Bill Ackman $8 Million To Being Wrongfully Accused Of Murder, Sent To Death Row

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Five weeks ago, Carl Icahn announced he'd be closing the hedge fund he opened in 2004. Was this a sign retirement was next to come, some wondered? Hell no, Icahn recently told a reporter who checked in with the activist investor. “What else would I do? Play shuffleboard somewhere?” Mr. Icahn said from his vacation home in Florida. Carl's got no time for anything so patently ridiculous, and is in fact busier than ever. What's he been up to?

* The usual, mostly.

Mr. Icahn has been particularly active in recent years. Since 2004, he has begun 91 activist campaigns involving 79 American companies, according to FactSet SharkRepellent, a firm that tracks corporate takeover defenses and investor activism...Often, all Mr. Icahn has to do is make his interest known to send a stock price rising. Last November, for instance, regulatory filings showed that he had taken stakes in the toy maker Mattel and the building products company Masco. Mattel’s shares jumped to a 52-week high. Masco’s are up about 17 percent since he bought the stake.

* As well as focusing his efforts on beating his son at chess.

Brett Icahn today sits on the boards of several companies in which his father has invested, including the video game maker Take-Two Interactive, American Railcar Industries and the food company Hain Celestial Group. He also runs a hedge fund that returned 50 percent last year...The two often play chess, wagering thousands of dollars a game. Brett plays better. “I can’t figure out how he does it,” his father says, adding that a chess pro was coming over to coach him later that day. “Don’t tell Brett. I don’t want him to know.”

* Calling people on their bull shit.

Mr. Icahn has made more than a few enemies and frenemies in his time. He tangled with Donald Trump last year over three casinos in Atlantic City, a battle of big money and bigger egos. Mr. Icahn eventually lost in court...Mr. Icahn says he likes Mr. Trump — no hard feelings. Then he adds, “I don’t even think he invited me to his daughter’s wedding — so how close can we be?”

* And fighting Bill Ackman to the death.

For the last seven years, Mr. Ackman has contended that Mr. Icahn owes him more than $8 million stemming from an investment in a Dallas real estate company, Hallwood Realty. The New York Supreme Court ruled in favor of Mr. Ackman in August 2005, as did an appellate court in October 2006. A final appeal is pending. But Mr. Icahn vows he will go all the way to the United States Supreme Court. “How many times have judges been wrong? How many people have gone to the death chamber because they’re wrong?” he asked. “Ackman is dead wrong.” Mr. Ackman says he is confident he will prevail. In the meantime, Mr. Icahn must pay him hefty interest while the payment is delayed. “It grows at about 9 percent a year,” Mr. Ackman said.

The Raider In Winter: Carl Icahn at 75 [NYT]


Carl Icahn Gives Son Four Years To Prove Himself

Ten years ago, Carl Icahn hired his son Brett to be an analyst at Icahn Enterprises and the kid didn't fuck anything up so he got to keep his job. Two year ago, Carl gave Brett and another employee, David Schechter, $300 million to invest under the "Sargon portfolio," and the guys returned 96 percent (before fees) through June. Last month, Carl tossed the duo an additional $3 billion and a contract that expires in 2016, at which time Papa Icahn will either officially Brett a worthy successor or offer to serve as a reference for his next gig. Under a 46-page legal agreement filed with federal regulators last month, Brett Icahn and Schechter will get to invest their boss’s capital in companies with stock market values between $750 million and $10 billion. The deal may free the elder Icahn, who still has final say over many aspects of the portfolio, to focus on larger targets for shareholder activism. Brett, who turns 33 this month, along with Schechter has been running $300 million for his father, who owns more than 90 percent of Icahn Enterprises LP, a holding company with $24 billion in assets including activist investing partnerships as well as the Tropicana casinos, an oil refiner and an auto-parts maker. The arrangement expires after Carl turns 80 in 2016, giving Brett the chance to both prove his mettle as a successor and develop a track record to start his own hedge fund. After hiring Brett as an investment analyst a decade ago, Icahn allocated the $300 million to his son and Schechter in April 2010 to invest in loans and securities of companies with less than $2 billion in equity value. Their investments, internally dubbed the Sargon portfolio, generated a gross cumulative gain of 96 percent by the end of June, according to a July 27 filing with the U.S. Securities and Exchange Commission...“These two guys doubled our money over the last two years,” the elder Icahn said in an interview. “You can’t complain about that.” Carl Icahn Hands Son Brett $3 Billion To Prove His Mettle [Bloomberg]

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