Tuesday, 31 March 2015
Last updated 13 hours ago
Jan 29 2009 | 1:23am ET
Activist hedge fund shop Steel Partners has finally responded to the barbs slung at its plan to list its flagship fund by fellow activist Carl Icahn.
Responding to a lawsuit filed earlier this month by an Icahn-controlled company and Bank of America, Steel asked the Delaware Chancery Court for a dismissal, calling it “utterly without merit.”
At issue is Steel’s plan, revealed last month, to take its Steel Partners II fund public. The New York-based firm last month merged the hedge fund with Utah-based WebFinancial Corp.—an unlisted industrial loan company that it bought for the purpose of combining it with Steel II. Steel hopes to hold an initial public offering of the combined entity later this year.
But BofA and Icahn has railed against the plan, calling it “a classic ‘bait and switch.’” According to the lawsuit, Steel’s Warren Lichtenstein had assured Icahn last month that investors would be notified of the plan and no action would be taken until at least next month.
For its part, Steel says that Icahn is simply “looking for a scapegoat” for the fund’s investment losses.
“Because it is so obvious that plaintiff’s claim boils down to nothing more than one for an award of $15 million in damages (at the absolute most), plaintiff’s motion is so utterly without merit as to be frivolous and worthy of sanctions” against BofA and ACF Industries, the Icahn-linked railway car component manufacturer that is invested with Steel II, Steel’s lawyers wrote to the court.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…