Activist investor Carl Icahn is facing a lawsuit from R2 Investments in regard to transactions around a telecom controlled by Icahn. According to the New York Times Dealbook, R2 alleges that in 2008 Icahn ignored bids for XO Communications so as to benefit several of his business ties. R2 says that Icahn coerced XO management into accepting a total of $780 million from affiliates in exchange for a stake of over 80 percent for Icahn funds. This came as three other potential bidders were ignored in favor of Icahn, according to R2. The hedge fund filed its complaint in April, but details of the suit were only revealed today.
Icahn Sued by R2 Investments for Conflict of Interest
Carl Icahn is under fire from a hedge fund that claims the activist received preferential treatment in a recent transaction.
August 14, 2009