If the reputational and financial damage already wrought by an insider-trading investigation weren’t bad enough for Carl Icahn, the probe has put a major deal he is working on in jeopardy.
According to The Wall Street Journal, Icahn has told people that he fears the probe could hurt a large deal he has been negotiating. It isn’t clear what company or companies are involved or what the size of the transaction is, but it could cost Icahn about $1 billion, the Journal reports.
The Federal Bureau of Investigation and Securities and Exchange Commission are investigating whether Icahn tipped off a friend, gambler William Walters, about his investments in, among other companies, Clorox Co. The authorities are also looking into trading by prominent golfer Phil Mickelson, who may have been tipped by Walters.
Icahn has denied any wrongdoing and attacked the rumors as “completely irresponsible.” Still, word of the investigation sent shares of his Icahn Enterprises holding company down about 4%, enough to cost Icahn more than $400 million on paper.