Icahn Sues Raynor For $100 Million On Federal Mogul 13D Filing (IEP)

It looks like there's beef in 13D filing land. After going through my WCI post from 2008, which included various filings from Icahn against management, I decided to check out what was going on at Icahn Enterprises (IEP). It appears there is a feud between Icahn Enterprises and Geoffrey Raynor's hedge funds. On a Federal Mogul 13D filing in January, Raynor filed a complaint about Icahn's recent $2 Billion bond offering (regarding the nature of his Federal Mogul holding in connection w/ the offering).  Icahn is now suing Raynor for $100 million in damages for interfering with the offering. Wow..

First here is part of the decent sized debt offering made by IEP:
"Senior Notes Offering

On January 15, 2010, Icahn Enterprises L.P. (“Icahn Enterprises”) and Icahn Enterprises Finance Corp. (“Icahn Enterprises Finance” and, together with Icahn Enterprises, the “Issuers”), closed their previously announced sale of $850,000,000 aggregate principal amount of 7¾% Senior Notes due 2016 (the “2016 Notes”) and $1,150,000,000 aggregate principal amount of 8% Senior Notes due 2018 (the “2018 Notes” and, together with the 2016 Notes, the “Notes”) pursuant to the purchase agreement, dated January 12, 2010 (the “Purchase Agreement”), by and among the Issuers, Icahn Enterprises Holdings L.P., as guarantor (the “Guarantor”), and Jefferies & Company, Inc., as initial purchaser (the “Initial Purchaser”)." [source: sec.gov]

Here is part of the 13D made by Raynor's Nineteen Eighty-Nine LLC.
"It has come to the attention of the Reporting Persons that Icahn Enterprises, L.P. may be materially misrepresenting the nature of its ownership of certain assets in connection with its recently announced $2 billion Senior Note sale.

On January 11, 2010, Nineteen Eighty-Nine, LLC consequently filed a lawsuit in the New York Supreme Court, County of New York, against Icahn Enterprises, L.P. and related defendants seeking a declaratory judgment, the imposition of a constructive trust over certain shares in Federal Mogul Corporation, monetary damages, and other relief. A copy of the complaint is attached hereto as an Exhibit, and is hereby incorporated by this reference into this Item 4." [source:  sec.gov]

And the $100 Million lawsuit made by Icahn.
"NEW YORK, Feb. 16 /PRNewswire-FirstCall/ -- Icahn Enterprises L.P. (NYSE: IEP) -- Icahn Enterprises, Carl Icahn and certain Related Icahn Entities (collectively the "Icahn Plaintiffs") announced today that they have commenced a lawsuit in the Supreme Court of the State of New York against Geoffrey Raynor, R2 Investments, LDC, Nineteen Eighty-Nine, LLC, Amalgamated Gadget, LP, Sceptor Holdings, Inc., Q Funding, LP, Acme Widget, LP and Brandon Teague (collectively the "Raynor Defendants"). The Icahn suit seeks at least $100 million in compensatory damages, as well as special and punitive damages and other relief.

The lawsuit stems from a 13D filing (as well as a complaint attached to that filing but never served) made by Raynor entities at a critical point during a $2 billion bond offering that was recently completed by IEP. The Icahn Plaintiffs assert that the claims made in the Raynor entities' 13D filing (and in the attached complaint) are without merit, and interfered with the IEP bond offering and caused damages to the Icahn Plaintiffs.

The Icahn Plaintiffs intend to proceed vigorously to assert their claims." [source: prnewswire]

That's some big money... It looks like they have history with XO Communications. For more on this visit these sites:

Icahn Serves Hedge Funds with $100M Suit (dealflowmedia)
Icahn Demands $100M From Hedge Funds (courthouse news service)
Q and Carl: Unhappy together (TheDeal Magazine)

Also this was funny: Overheard: Beware, Barbarians (WSJ)