Carl Icahn - Business Career and Interests

Business Career and Interests

Little is known about Carl Icahn's endeavors prior to the 1990s, yet still many have regarded him as a main player in the "junk bond" and "mortgage bond" industries which transformed corporate America as well as S & L (savings and loan) associations into a profitable enclave susceptible to investment bankers and corporate raiders.

Icahn developed a reputation as a ruthless "corporate raider" after his hostile takeover of TWA in 1985. The result of that takeover was Icahn systematically selling TWA's assets to repay the debt he used to purchase the company, which was described as asset stripping.

Icahn also attempted the grand prize of U.S. Steel, launching a hostile takeover for 89% of the industrial giant for $7 billion ($14.8 billion today) in late 1986 and only being rebuffed finally by CEO David Roderick on January 8, 1987.

In 2004, Icahn purchased a large block of stock of Mylan Laboratories, after Mylan had announced a deal to acquire King Pharmaceuticals. Icahn threatened a proxy fight over the acquisition, on the ground that the deal required Mylan to overpay. In early 2005, Mylan gave up its efforts to acquire King, but according to the management, the decision was made after it monitored relevant facts, not due to pressure from Icahn.

In 2006, Icahn sold his stake in KT&G (Korea Tobacco & Ginseng) for a substantial profit.

In 2007, Icahn and his affiliates owned majority positions in firms including ACF Industries, American Railcar Industries, XO Communications, Philip Services, and NYSE-listed Icahn Enterprises, formerly known as American Real Estate Partners.

Icahn made an attempted run as a major shareholder of Time Warner, owning about 3.3% of the company valued at billions of dollars. He has been actively seeking to influence the direction of Time Warner, often in conflict with its former chief executive, Richard Parsons. Although Time Warner recently sold 5% of its AOL division, Icahn has been pressing for additional action to increase shareholder value. On February 7, 2006, a group led by Icahn and Lazard Frères CEO Bruce Wasserstein unveiled a 343-page proposal calling for the breakup of Time Warner into four companies and stock buybacks totaling approximately $20 billion. On February 17, 2006, the Icahn-led group agreed with Time Warner to not contest the re-election of Time Warner's slate of board members at the 2006 shareholders meeting. In exchange for the Icahn group's cooperation, Time Warner would buy back up $20 billion of stock, nominate more independent members to the board of directors, cut $1 billion of costs by 2007, and continue discussions with the Icahn group over their proposal, particularly on the future of Time Warner Cable.

In 2008, Icahn showed interest in the takeover of Yahoo! and the ousting of Jerry Yang from his position as CEO to allow Microsoft to purchase the web company.

Icahn sold his casino interests in Nevada on February 21, 2008. They included the Stratosphere, Arizona Charlie's Boulder, Arizona Charlie's Decatur, and Aquarius Casino Resort which are operated through American Entertainment Properties, a subsidiary of Icahn's major company, Icahn Enterprises. The sale price of $1.3 billion was roughly $1 billion more than he paid for the properties.

In June 2008, Icahn launched The Icahn Report which campaigns for shareholder rights. It hosts United Shareholders of America where individual investors can sign up and take part.

Icahn was a director of Blockbuster until January 2010, and the chairman of Imclone, Icahn Enterprises, XO Communications, WestPoint Home, Cadus, and American Railcar Industries. He is a beneficial owner of Adventrx Pharmaceuticals, Vector Group and has had significant holdings in Time Warner. Icahn tried to take over Marvel Comics, coming into conflict with Avi Arad, Ron Perelman, and Ike Perlmutter. Marvel ended up being acquired by The Walt Disney Company in late 2009.

Icahn's hedge funds currently own 5.6% of biotechnology company Biogen Idec. Beginning in 2007, Icahn has steadily increased his stake in Biogen, seeking to possibly acquire, break up, and/or sell off various parts of the company. As of June 2009, Icahn has managed to seat two of his allies on Biogen's board with the apparent goal of splitting the company into two entities and possibly replacing CEO James C. Mullen, of whom he has been highly critical.

In July 2010, Icahn acquired 14 percent stake in Mentor Graphics because of which Mentor Graphics signed a Poison Pill provision. As of September 2010, Icahn owns just less than 15 percent of Mentor Graphics. On February 22, 2011 he made an offer to buy Mentor Graphics for about $1.86 billion in cash in a move to push other suitors to declare themselves. On October 31, 2012 Icahn bought 5.5 million shares of the internet video service provider Netflix taking a 10% stake in the company.