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Latest Business News

Icahn Plans $1.19B Bid for Fairmont Stake

Friday, December 02, 2005 2:14:05 PM
By PAULETTE CHU

NEW YORK (AP) - Billionaire investor Carl Icahn, who says Fairmont Hotels & Resorts Inc. should sell itself to a larger competitor, said Friday he plans to launch a $1.19 billion cash offer to obtain a controlling 51 percent stake in the luxury hotel chain.

Icahn said he will offer to buy up to 29.6 million shares of Fairmont for $40 per share. The purchase would boost Icahn's overall stake in Fairmont to 51 percent from 9.3 percent.

Shares of Fairmont rose $1.82, or 4.75 percent, to $40.61 in midday trading, topping their previous 52-week high of $39.70. Since the year began, the Toronto-based company's stock had risen 18 percent.


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