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Icahn Enterprises (IEP -12.5%) prices its secondary at $63/unit, giving Icahn another $200M with...

Icahn Enterprises (IEP -12.5%) prices its secondary at $63/unit, giving Icahn another $200M with which to battle Bill Ackman on Herbalife (HLF +3%). (PR)
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Comments (10)
  • Drew Robertson
    , contributor
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    Let me be the first to say that if I was a (minority) shareholder in IEP I'd be plenty pissed off at Carl's vendetta with Bill. Fortunately I am not.
    1 Mar 2013, 11:36 AM Reply Like
  • Abraxas
    , contributor
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    I don't think what Icahn is doing is simply a vendetta with Ackman (but I am not on a first name basis with them, unlike you). Regardless, why exactly would you be unhappy? He is already up on his trades and seems very well positioned to make lots of money on HLF. isn't that what he is suppose to do?
    1 Mar 2013, 12:53 PM Reply Like
  • Zeus2012
    , contributor
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    Hmmm.....

     

    I wonder what he's going to use that additional $230 million for....
    1 Mar 2013, 11:38 AM Reply Like
  • bullwinkle
    , contributor
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    Hard to be too PO'd with the stock up 50%+ since late Dec, even with today's selloff. So count me as some who feels fortunate to be a shareholder. This might be a good opp to buy, given that book value is around 69, according to the prospectus (7.274bn BV / 104.85mm shares). The stock has traded at a significant discount to book in the past, but more recently has traded at a significant premium. I think this secondary is more about favorable market conditions than HLF. I bet Carl has a lot of attractive investment opps currently, especially with the cheap financing that is now available.
    1 Mar 2013, 12:24 PM Reply Like
  • Drew Robertson
    , contributor
    Comments (349) | Send Message
     
    I have to agree after looking at the chart. He got the press from his fight with Ackmann and lots of traders got on board. He sold the $200m secondary not because he needed the cash but because he could.
    1 Mar 2013, 12:39 PM Reply Like
  • mgh123
    , contributor
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    Anyone know why he needs $200m more cash when there is over $1bn in cash sitting there, as well as cheap funds from brokers? Thanks.
    1 Mar 2013, 12:28 PM Reply Like
  • bullwinkle
    , contributor
    Comments (49) | Send Message
     
    There is 1.3bn in cash, but 4.1bn in holdco debt. Also, he returned 1.75bn in capital to HF investors in 2011 and he probably wants to rebuild his war chest. Maybe he has another acquisition in mind, and there are those 11.5mm HLF calls which will cost about 290mm to exercise plus the initial premium of about 170mm, assuming the stock was trading around 40 when he bought them. Speaking of which, I don't see the HLF options included in the net asset calculation.
    1 Mar 2013, 02:32 PM Reply Like
  • Abraxas
    , contributor
    Comments (300) | Send Message
     
    Icahn has also received permission to raise his HLF position to 25%, basically doubling his current one (if he does).
    1 Mar 2013, 03:59 PM Reply Like
  • mgh123
    , contributor
    Comments (6) | Send Message
     
    Thanks. I think HLF is just in the investments line - the $2.6bn.
    2 Mar 2013, 03:20 AM Reply Like
  • fxfx
    , contributor
    Comments (1188) | Send Message
     
    Anyone investing in IEP needs a reality check. the stock has done well, yes - but carl icahn is best known for NOT sharing his profits with anyone. He returned lots of the money to outside investors to be free from any constraints - and a year later he makes a u-turn to finance his ackman-vendetta. which, btw. is as stupid an ego battle as it gets. tails, icahn wins, heads, you lose. Icahn is the most unscrupulous corporate raider wallstreet ever saw - i wouldn't entrust him with a dime of my money. he has made tons of money - but he has no style, is a greedy old man who obviously has only one purpose in life - to destroy others and profit from that. what a miserable life - despite and because of all the billion $ he made...
    11 Mar 2013, 02:24 PM Reply Like
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