Carl Icahn Scores $757 million Profit After American Railcar Announces Merger (CNBC)
Activist investor Carl Icahn scored a big payday on Monday after shares of tanker car maker American Railcar Industries surged on news that the company will merge with a subsidiary of ITE Rail Fund. Icahn owned 62.2 percent of American Railcar’s shares outstanding as of June 30, according to FactSet, having first taken a majority stake in 2010. The stake was worth nearly $550 million through Friday’s close. In a statement Monday, Icahn Enterprises said its investment in American Railcar has resulted in a profit of $757.2 million, including the deal.
Exclusive: Sears Chairman Lampert Seeks Partner for Bankruptcy Financing – Sources (Reuters)
(Reuters) – Sears Holdings Corp (SHLD.O) Chairman Eddie Lampert is in discussions with at least one potential partner to contribute to a $300 million bankruptcy loan the U.S. retailer is seeking, people familiar with the matter said on Sunday. Lampert’s hedge fund, ESL Investments Inc, has held discussions with Cyrus Capital Partners LP, an investment firm that holds some of Sears’ existing debt, about sharing the burden of funding portions of the $300 million loan, which would be separate from another $300 million bankruptcy loan that Sears’ banks have offered to provide, the sources said.
A Billionaire Pledges to Fight High Drug Prices, and the Industry Is Rattled (The Wall Street Journal)
HOUSTON—Billionaire John D. Arnold is spending a chunk of his fortune to campaign against America’s high drug prices. The drug industry is spending a chunk of its fortune to counter him. Mr. Arnold is the biggest single spender on his side of the battle. He made his money placing bets on price swings in the natural-gas market, first as an energy trader at Enron, then at his own hedge fund after Enron’s collapse. Now retired, the 44-year-old Texan with an estimated $3.3 billion in assets is dedicating himself to the topic..
The Bill Ackman Comeback Picks Up Steam With a Recommendation (Barron’s)
Activist investor Bill Ackman is enjoying a modest revival this year after three terrible years of investment performance. Now, his closed-end fund has picked up a recommendation from one of the few analysts covering it. Jefferies analyst Matthew Hose on Friday upgraded Pershing Square Holdings to Buy from Hold, citing its wide discount to net asset value, better performance and actions to narrow the discount. The fund trades on Euronext Amsterdam (ticker: PSH.Netherlands).
Tiger Global Raises $3.75 Billion for Latest Venture Fund (Bloomberg)
Tiger Global Management has amassed $3.75 billion for its 11th venture capital fund, according to a person familiar with the matter. The New York-based firm’s initial fundraising target was $3 billion for the pool, said the person, who asked not to be identified because the matter is private. The new fund, Private Investment Partners XI, will specialize in technology investments like consumer internet, cloud and industry-specific software. It will also focus on direct-to-consumer firms in the U.S., India and China.