Icahn Deal On The Rocks After Trading Probe Revealed

Jun 4 2014 | 12:36pm ET

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.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of