Activist Shareholder Carl Icahn Seeks Due Diligence Review of Fairmont Hotels & Resorts
Activist shareholder Carl Icahn said in a letter Tuesday to the board of Fairmont Hotels & Resorts Inc. that he wants to be included in the board's process of providing its confidential financial information to interested parties.
The billionaire financier said he disagreed with the board's decision to reject his $1.2 billion offer to acquire a majority stake in the company, but said he was pleased at the board's decision to "actively explore alternatives to the offer," according to a copy of the letter filed with the Securities and Exchange Commission.
Icahn said he might "substantially" increase his $40-a-share offer for the company if he were able to learn more about the company through its confidential documents and conduct his own due diligence review.
Icahn owns a 9.88 percent stake, or 7.1 million shares of Toronto-based Fairmont Hotels & Resorts, a luxury hotel management company.
Fairmont shares rose 67 cents, or 1.6 percent, to close at $42.25 on the New York Stock Exchange, a new 52-week high.