In a filing this morning with the SEC, it emerged that Carl Icahn raised its bid for XO Holdings (news, filings) on Friday. However, the offer expires today at 6pm Eastern. Yes, that's right - he gave them a whole weekend to think about it, and the company itself hasn't even issued a PR or made a filing on the subject. Here is the text:
On October 23, 2009, ACF Industries Holding Corp. ("ACF Holding"), an entity wholly owned by Carl Icahn, the Chairman and holder of a majority of the outstanding Shares, sent a letter to the Special Committee (the "Special Committee") of the Board of Directors of the Issuer (the "ACF Holding Letter"), pursuant to which ACF Holding made a non-binding proposal to increase its previously outstanding offer to acquire all of the outstanding Shares which it does not own, to an aggregate of $0.80 net per share in cash. The prior offer, which was rejected by the Special Committee on September 28, 2009, was for an aggregate of $0.55 net per share in cash. Pursuant to the ACF Holding Letter, the current offer will expire at 6:00 pm (EST) on Monday, October 26, 2009.
Now, is $0.80 much better than $0.55 that "substantially undervalued" the company? In an ideal world, it would not seem to be anywhere close. But this is the alternative world of the independent special committee, who who really knows.
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