Carl Celian Icahn (born February 16, 1936) is an American investor and business magnate. He is the founder and majority shareholder of Icahn Enterprises, a diversified conglomerate holding company based in New York City, formerly known as American Real Estate Partners. He is also Chairman of Federal-Mogul, an American developer, manufacturer and supplier of powertrain components and vehicle safety products.
In the 1980s Icahn developed a reputation as a “corporate raider” after profiting from the hostile takeover and asset stripping of the American airline TWA. According to Forbes Magazine, Ichan has a net worth of $16.6 billion making him the 26th wealthiest person on the Forbes 400, and the 5th wealthiest hedge fund manager as of February 2017.
According to Fortune Magazine, U.S. President Donald Trump asked Icahn to serve as a special adviser on financial regulation within his administration starting January 2017.
Early life and education
Icahn was raised in the Far Rockaway, Queens section of New York City, where he attended Far Rockaway High School. His family was Jewish. His father, an atheist, was a cantor, and later a substitute teacher. His mother also worked as a schoolteacher. Carl graduated from Princeton University with a Bachelor of Arts degree in philosophy in 1957 and then entered New York University School of Medicine, but he dropped out after two years to join the army reserves.
Investment career
Early career and ‘corporate raider’ years: 1961 – 2005
Icahn began his career on Wall Street as a stockbroker in 1961; in 1968, he formed Icahn & Co., a securities firm that focused on risk arbitrage and options trading. In 1978, he began taking controlling positions in individual companies. Icahn developed a reputation as a “corporate raider” after his hostile takeover of Trans World Airlines in 1985. Icahn systematically sold TWA’s assets to repay the money he borrowed to purchase the company, which was described as “asset stripping.” In 1988, Icahn took TWA private, gaining a personal profit of $469 million, and leaving TWA with a debt of $540 million. In 1991, he sold TWA’s London routes to American Airlines for $445 million. He formed lowestfares.com to sell TWA tickets and acquired portions of Global Leisure Travel from Ramy El-Batrawi to merge into it.
Icahn launched an unsuccessful $7 billion hostile takeover for 89% of U.S. Steel in late 1986.
In July 2001 Icahn’s Riverdale, LLC loaned Genesisintermedia $100 million in exchange for an option to purchase 2 million shares of the company.
In 2004, after Mylan Laboratories had announced a deal to acquire King Pharmaceuticals, Icahn purchased a large block of stock and threatened a proxy fight over the acquisition. Mylan later gave up its efforts to acquire King.
- Carl Icahn is one of Wall Street’s most successful investors and has been shaking up corporate America for decades.
- Icahn’s primary investing vehicle is publicly traded Icahn Enterprises. He also runs an investment fund made up of his personal cash and money belonging to Icahn Enterprises.
- He spent the first months of the Trump Administration advising Donald Trump on regulatory overhaul, but left the position amid controversy.
- Icahn grew up in Far Rockaway, Queens. He graduated from Princeton with a degree in philosophy in 1957.
- He has donated about $200 million to what is now the Icahn School of Medicine at Mount Sinai.
Source: