Icahn Affiliate Submits Bid for XO

XO Holdings Inc. on Friday announced that it formed a special committee of its board of directors to evaluate a proposal by an affiliate of billionaire Carl Icahn to acquire the telecommunications company for 70 cents per share in cash.

In a press release, Reston, Va.-based XO said ACF Industries Holding Corp. submitted the proposal earlier this month. Icahn is the chairman of XO Holdings, and through ACF Holding and its affiliates, already holds the majority of XOs common stock.   

In response to the news, a national law firm that practices securities law said it is investigating the proposed acquisition on behalf of XO shareholders.

The investigation concerns, among other things, whether the consideration to be paid to XO shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of XO,” New York-based Tripp Levy PLLC stated in a press release. 

The law firm further stated that the investigation concerns whether Icahn and XOs directors are failing to act in the best interests of shareholders in connection with the transaction. 

According to Tripp Levy, Icahn owns roughly 91 percent of XOs outstanding shares.

Shares of XO opened Monday at 72 cents and were trading over the counter at 75 cents as of 2:48 p.m. ET.