Xerox’s top shareholder gets “breathing room”
Article published in The Wall Street Journal about Carl Icahn and his controlling shares of Xerox
- In order to get “breathing room from lenders following a short-seller attack”, Carl Icahn and banks finalized amended loan agreements
- Unties his personal loans from the trading price of his Xerox shares
- Icahn’s shares have “tumbled 43%” this year
- New agreements increase Icahn’s collateral and setup a plan for him to fully repay the loans in 3 years
- Previously, 60% of Icahn’s shares were pledged as collateral for personal loans, which led his lenders to privately call on him to pledge more collateral as stock price fell
- Forbes magazine estimates that this cost Icahn some $8 billion in net worth
- Icahn has agreed to pay banks $500 million in September, make 8 quarterly payments of $87.5 million and the remaining $2.5 billion balance in 3 years from now