July 12, 2002 -- (WEB HOST INDUSTRY REVIEW) -- Billionaire Carl C. Icahn offered to spend $331 million to acquire the bank debt of bankrupt telecommunications company XO Communications Inc., in what the Washington Post said appeared to be another attempt to take over the company.
Icahn already holds more than $750 million of XO?s $5.1 billion in bonds, and reportedly offered to pay 40 percent of the value of the bank loans to acquire anywhere from half to all of the $1 billion bank credit. Successfully acquiring the debt would place Icahn as XO?s most senior creditor, giving him a substantial say in the company?s future.
Sources reportedly say that XO?s bank creditors feel the offer is too low, but might be willing to make a deal for all of the debt.
Icahn?s offer of $550 million in cash for about 55 percent ownership of the restructured XO was rejected by bank creditors, who have been at odds with Icahn in the past, attempting to block his efforts to acquire XO?s debt.
If XO?s creditors accept Icahn?s offer, he would reportedly consider offering an alternative to the company?s existing restructuring plans.
