Billionaire Investor Carl Icahn has been squeezing Wall Street and corporate rivals for decades, according to Nathan Vardi of Forbes.
Nathan has cited two recent cases where the founder of Icahn Capital Management has been thwarting the efforts of billionaire investor Bill Ackman and Michael Dell of Dell Inc (NASDAQ:DELL).
At the end of last week, Bruce Greenwald, the founding director of the Heilbrunn Center for Graham and Dodd Investing at Columbia Business School, sat down for a Fireside Chat with Li Lu, the founder and chairman of Himalaya Capital as part of the 13th Columbia China Business Conference. The chat spanned many different topics, Read More
William Ackman is the founder of Pershing Square Capital Management, L.P. In late 2012, he took a massive short position in Herbalife Ltd. (NYSE:HLF), declaring the nutritional supplement company a pyramid scheme. However, Carl Icahn questioned Ackman’s investment skills in a live showdown on CNBC.
During the last few days, Herbalife Ltd. (NYSE:HLF) shares moved from $43.38 to $49.55. Pershing Square put out a release questioning the polling results released recently by Herbalife Ltd (NYSE:HLF). According to Pershing Square, the polling results contradict the results of two surveys previously released by the company. Pershing Square also indicated that Herbalife Ltd. (NYSE:HLF)’s surveys do not refute that it is a pyramid scheme.
Carl Icahn Took Big Stake In Herbalife
Carl Icahn played a dominant role in Herbalife Ltd. (NYSE:HLF)’s stock resurgence in 2013 when he acquired a large slice of 16.5 percent in Herbalife Ltd. (NYSE:HLF). Besides he placed two representatives on the board of Herbalife Ltd. (NYSE:HLF). Ackman took $1 billion short position in Herbalife Ltd. (NYSE:HLF). However, with Carl Icahn’s support, Herbalife Ltd. (NYSE:HLF)’s stock started rebounding this year and posted over 50 return, thwarting the efforts of Ackman.
According to Nathan Vardi of Forbes, this move from Carl Icahn has severely hurt Ackman’s 2013 hedge fund returns. However, Carl Icahn would have relished settling scores with Ackman.
Carl Icahn Acquired 72 Million Shares in Dell
Besides Ackman, Carl Icahn is driving Michael Dell of Dell Inc (NASDAQ:DELL) crazy. The activist investor Carl Icahn appears to be the only thing seemingly standing in the way of Michael Dell’s leveraged buyout of Dell Inc (NASDAQ:DELL) for $13.65 per share.
Carl Icahn managed to strengthen his position in Dell Inc (NASDAQ:DELL) by buying 72 million shares from Southeastern Asset Management for $13.52 a share. This boatload of shares was obtained at a price less than what Dell’s buyout plan proposes to pay for them.
Earlier this week, Carl Icahn proposed that Dell Inc (NASDAQ:DELL) begin a $14 per share tender offer as a way of settling liquidity questions at the struggling PC maker. He also urged shareholders once again to vote against the go-private offer brought by the company’s founder.
According to Nathan Vardi of Forbes, the activist investor Carl Icahn is positioning himself to either prevail in his revamped effort to get Dell Inc (NASDAQ:DELL) to repurchase about 1.1 billion of his shares at $14 per share or go for Michael Dell’s original go-private offer at $13.65 a share.
Thus, Nathan Vardi of Forbes concludes that Carl Icahn knows how to drive billionaire rivals crazy.