Karl Icahn made his fortune by manipulating the top management of joint stock companies. In 2017, his fortune is estimated at $ 25 billion. Yes, his activities can hardly be called correct, but, as we know, the money does not smell.
Big money attracted Karl from childhood. Living in a provincial area of New York with his mother, who worked all her life as a school teacher, Karl was very jealous of his uncle, who made a fortune in dubious financial transactions.
Even then, he decided that he would go to his wealth by any means. The first serious money Ikan won in poker – more than one thousand dollars. For 1950, it was an impressive amount, which became the first capital of the future investor.
Ikon began his financial career as an intern at a brokerage company of his uncle with a weekly salary of $ 100, while in parallel he made quite successful poker earnings. As a representative of the company, Ikan was involved in arbitration, mergers and acquisitions.
In 1968, Carl bought a place on the New York Stock Exchange and established Icahn & Co., Inc. as a brokerage firm, his uncle helped him again with a donation of $ 400,000.
In 1979, Ikan made his first attempt to intervene in the company's management. He gradually acquired a 20% stake in the small company Tappan, thereby gaining a place on the company's board of directors. Further, thanks to pressure, intimidation and blackmail, he convinced his superiors to sell the company to Electrolux competitors, who paid $ 18 per share, while Karl Ikan bought shares at $ 7.5 per share a year ago.
The deal allowed the Swedes to enter the US market, and Ikan earned the first several tens of millions of dollars.
Carl’s next step was the paper-based Hammermill greenmail. The scheme was very similar to the story with Tappan, except that with his pressure on the board of directors, as well as boorish and impudent behavior, he forced them to buy his shares at a price higher than the market price. This allowed him to earn another $ 9 million in net profit.
In 1982, Carl swung at Marshall Field and eventually made a hundred million dollars when the company merged with a global trading organization from England. Ikan got the stock for $ 15, and British retailer Batus Inc bought out his 20% stake at $ 30 per share.
After there were Anchor Hockings, American Can, Owen-Illinois and others. Every time Karl Ickann acted on the same plan.
The largest business of Karl Ikan
Trans World Airlines was the largest carrier of passengers from the United States to Europe, but in 1980 experienced significant problems. The capture of TWA was a long-running project, Carl Ikan began buying up shares in the airline in 1985. For 7 years of running the company, Karl did everything to destroy it. As a result, he drove it into debt and sold it to American Airlines, earning more than $ 500 million on it.
History perfectly shows what can be achieved by combining a strong character and knowledge of the financial world!