Icahn Scuttled Federal-Mogul Share Deal, NY Court Hears

Law360, New York (March 7, 2012, 6:29 PM EST) -- An attorney for funds affiliated with Texas hedge fund manager Geoffrey Raynor told a New York state appeals court Wednesday that entities affiliated with investor Carl Icahn torpedoed their joint plans to invest in auto parts manufacturer Federal-Mogul Corp.

Raynor-backed fund Nineteen Eighty-Nine LLC had an agreement with funds affiliated with Icahn to jointly invest in a reorganized Federal-Mogul, which at the time was winding through bankruptcy to separate asbestos-related claims from its business operations. It emerged from bankruptcy in 2007.

While Icahn and his investment...
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