80's Takeover artist Carl Icahn sniffing around LightSquared
0. phoneArena posted on 21 Jan 2012, 00:18
Former 80's Takeover artist Carl Icahn has been snapping up some of LightSquared's debt at bargain basement prices in what could be a precursor to an attempt by Icahn to take over the reigns of the company from Hedge Fund magnate Philip Falcone...
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1. Droid_X_Doug posted on 21 Jan 2012, 07:05 0 0
Carl could get a huge payday.... He has probably calculated the sale value of LightSquared's assets (those that could be sold) and his entry price must be under that liquidation value.
Then again, his bond purchases could be close to worthless.
2. VinCrel posted on 21 Jan 2012, 08:20 0 0
I'm not sure if i understood it correctly, but does this mean that Carl is trying to buy the stocks of LightSquared while it is down and about to close and then sell it? or just keep it in the light of the possibility that LightSquared will be able to resolve its gps problem?
If that's the case, then, he taking quite a gamble here.. unless he knows someone who will be able to resolve it outside of LightSquared then when he owns some part of it, he will have this "guy" resolve the issue.. but nonetheless, this is just like a conspiracy theory of mine..
3. Droid_X_Doug posted on 21 Jan 2012, 08:45 0 0
@VinCrel - According to the article, Icahn is buying LightSquared debt (bonds) at a discount from face (par) value. If LightSquared goes BK, bond holders get paid before equity (stock) holders. If Icahn bought the bonds at a low enough price, he could stand to do quite well if there is a liquidation of LightSquared in the future. Likewise if LightSquared somehow is able to pull a technological rabbit out of their hat, as the bond interest is based on the face (par) value, and Icahn paid a discounted price.
