Carl Icahn: From Activist Investor to Public Figure

Carl Icahn is a name that's synonymous with corporate activism and savvy investing. He's been a thorn in the side of many CEOs, pushing for changes that benefit shareholders.

Born on February 16, 1936, in Brooklyn, New York, Icahn grew up with a strong work ethic, dropping out of college to sell bonds on the street. His early days in the financial world laid the foundation for his future success.

Icahn's rise to prominence began in the 1970s, when he started his own investment firm, Icahn & Co. He's since become a household name, known for his aggressive tactics and uncanny ability to spot undervalued companies.

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Carl Icahn was born in Brooklyn to an Ashkenazi Jewish family. His father, Michael Icahn, was a cantor and later a substitute teacher, and his mother, Bella (née Schnall), worked as a schoolteacher.

Icahn grew up in the Far Rockaway neighborhood of Queens in New York City. He attended Far Rockaway High School.

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Carl Icahn graduated from Princeton University with an A.B. in philosophy in 1957. His senior thesis was titled "The Problem of Formulating an Adequate Explication of the Empiricist Criterion of Meaning."

He later entered New York University School of Medicine, but dropped out after two years to join the Army Reserve.

Carl Icahn's business career is a testament to his shrewd investment strategies and deal-making prowess. He purchased a 9.2% stake in Telik, a biotech company, in January 2007.

In May 2007, Icahn lost an election for a seat on Motorola's board of directors, despite owning 3% of the company. This loss didn't deter him from continuing to build his stake in other companies.

Lear Corporation's board of directors accepted a $2.3 billion takeover offer from Icahn on February 9, 2007. This deal showcased his ability to negotiate successful acquisitions.

Icahn increased his stake in BEA Systems to 13.22% in September 2007, just before Oracle Corporation announced its acquisition of the company. His support for the acquisition likely influenced his decision to increase his stake.

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In April 2007, Icahn sold his casino interests in Nevada for $1.3 billion, a significant profit from his initial investment. This sale marked a turning point in his business strategy, as he began to focus on other investment opportunities.

In March 2008, Icahn sued Motorola as part of his effort to gain control of the company. This lawsuit demonstrated his willingness to take bold action to achieve his business goals.

Icahn was involved in the sale of Imclone to Eli Lilly and Company for $6.5 billion in cash in 2008. This deal showcased his ability to navigate complex business transactions.

In April 2009, Icahn engaged in a proxy battle for Amylin, a move that highlighted his commitment to taking an active role in the companies he invests in.

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In May 2010, Carl Icahn acquired a 6.9% stake in Mentor Graphics, which he later increased to 14% in July.

Icahn's investment in Mentor Graphics was not without its challenges, as the company retaliated with a shareholder rights plan in an attempt to deter him.

By April 2013, Icahn had accumulated a 9.2% stake in Nuance Communications.

Icahn's efforts to acquire Nuance Communications were likely driven by the company's significant growth potential in the speech recognition and transcription markets.

In August 2013, Icahn sued Dell and its board in an attempt to derail a $24.4 billion buyout bid by CEO Michael Dell, opting instead for his own rumored bid.

Icahn's lawsuit against Dell was a bold move, but ultimately unsuccessful.

In October 2013, Icahn held 4.7 million shares of Apple Inc., which he would later sell in April 2016 due to concerns about Apple's relationship with China.

That same month, Icahn acquired around 61 million shares in Talisman Energy, leading to a surge in the share price.

Icahn's investment in Talisman Energy was a savvy move, as it allowed him to capitalize on the company's growth potential in the oil and gas industry.

In November 2013, he acquired a 12.5% interest in Hologic, a medical device and diagnostics manufacturer.

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Icahn's acquisition of Hologic was a strategic move, as it allowed him to tap into the company's growing demand for medical devices and diagnostics.

In January 2014, Icahn pushed eBay to complete the corporate spin-off of PayPal, starting a proxy fight that was eventually settled by April.

Icahn's efforts to push for the PayPal spin-off were likely driven by his desire to unlock value for eBay shareholders.

In January 2016, Icahn disclosed a 4.66% stake in Gannett Company, as well as shares in Cheniere Energy and Freeport-McMoRan, both of which declined in value.

Icahn's investments in Cheniere Energy and Freeport-McMoRan were likely affected by the decline in oil prices during this period.

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Carl Icahn is known for his high-profile activism in the corporate world. He has been involved in numerous high-profile battles with corporate boards and CEOs.

Icahn has been a vocal advocate for shareholder rights and has used his influence to push for changes in companies' leadership and operations. He has a reputation for being a shrewd negotiator and has often come out on top in his battles with corporate executives.

Icahn's public life has been marked by controversy, with some critics accusing him of being a corporate raider who only cares about personal gain. However, his supporters argue that he is a champion of shareholder value and a necessary check on corporate power.

Public policy and economics are closely tied in the life of Carl Icahn. He endorsed Donald Trump in the 2016 presidential election and formed a super PAC pledging $150 million to push for corporate tax reform.

Icahn's influence in the Trump administration was significant, as he was initially considered for the role of United States Secretary of the Treasury. However, he was instead nominated as special advisor to the president on regulatory reform.

As special advisor, Icahn played a key role in shaping policy, including the imposition of a 25% tariff on steel imports, which helped him avoid a $6 million loss on his steel-price sensitive stock.

Icahn's business interests were not affected by his role as special advisor, as he did not have specific duties and was not a federal employee.

His influence was also seen in the consideration of Scott Pruitt's nomination as Administrator of the Environmental Protection Agency, during which Icahn specifically asked Pruitt about his position on the EPA's Renewable Fuel Standard.

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Icahn's proposal to change the ethanol rule would have saved CVR Energy, in which he has 82% ownership, $205.9 million a year.

CVR Energy's stock doubled after President Trump's election, increasing $455 million in value, thanks in part to President Trump's decision to expand the tax advantage of master limited partnerships.

Icahn has made significant contributions to various institutions, including Princeton University, where he funded a genomics laboratory, the Carl C. Icahn Laboratory.

He also made large contributions to Mount Sinai Hospital, which named a building the Icahn Medical Institute and renamed the Mount Sinai School of Medicine as the Icahn School of Medicine at Mount Sinai.

The Icahn Genomics Institute, led by Brian Brown, PhD, was renamed after his contribution. Icahn is a trustee at Mount Sinai Hospital.

Icahn's foundation, the Children's Rescue Fund, built Icahn House in The Bronx, a 65-unit complex for homeless families. It also operates Icahn House East and Icahn House West, both homeless shelters in New York City.

In 2010, Icahn joined the Giving Pledge list, pledging to give away more than half his fortune.

Carl Icahn's activist investing style has made him a household name. He's known for taking large positions in undervalued companies and pushing for changes to increase shareholder value.

Icahn's tactics can be quite public, as seen when he tweeted about his large position in Apple in 2013, prompting a 5% jump in the stock price. He's also not afraid to publicly shame companies, as he did with eBay in 2014, calling it one of the worst-run companies he'd ever seen.

One notable example of Icahn's success came when he took a major stake in Herbalife and got two of his representatives on the board, outmaneuvering fellow billionaire Bill Ackman.

Carl Icahn made a $100 million investment in Lyft on May 15, 2015.

In November 2015, Icahn hired CBRE Group to market the unfinished Fontainebleau Las Vegas to potential buyers. He also swapped his stake in eBay for shares in PayPal and disclosed a 7.13% stake in Xerox.

Icahn offered to acquire Pep Boys in December 2015 and raised his stake in Cheniere Energy to 13.8%, making him its largest shareholder.

In August 2016, Icahn increased his stake in Herbalife Nutrition to 21%.

Icahn closed the Trump Taj Mahal Casino in Atlantic City in October 2016, citing a $350 million loss and failure to reach a deal with striking union workers.

In November 2016, he increased his holdings in The Hertz Corporation after the company's stock price had declined significantly.

Icahn acquired a 9.7% stake in Conduent in 2017 and sold out of Allergan and Nuance Communications. He also increased his stakes in Navistar International and Herbalife Nutrition.

In May 2020, Icahn sold his entire 39% stake in Hertz Global for 72 cents a share, losing almost $2 billion on the investment.

Icahn nominated two people for election to McDonald's board of directors in February 2022, aiming to pressure the company to improve conditions for pigs raised by its suppliers.

Only 1% of McDonald's shareholders voted in favor of Icahn's nominees in May 2022, scoring a victory against his demands.

Activist investors can be a force to be reckoned with, as Carl Icahn's impact on Apple shows.

Google took steps to prevent activist investors like Icahn from taking control of the company by introducing a new C-class of shares with no voting power.

Activist investors often take positions in stocks with the intention of increasing the share price, which is a positive sign for existing shareholders.

However, this doesn't guarantee success, as seen in Icahn's $100 million investment in Lyft, which didn't seem to pay off as expected.

Icahn's investment in Lyft was just one of many in 2015, as he also acquired a 7.13% stake in Xerox and offered to acquire Pep Boys.

In 2017, Icahn sold the unfinished Fontainebleau Resort Las Vegas for $600 million, more than four times what he paid.

Activist investors can also be involved in high-profile proxy fights, as seen in Icahn's nomination of two people for election to McDonald's board of directors in 2022.

However, Icahn's demands for McDonald's to improve conditions for pigs raised by its suppliers were rejected by 99% of shareholders, with only 1% voting in favor of his nominees.