From BI: It's all out being put out there now. The feud between hedge
fund managers Bill Ackman and Carl Icahn reached a fevered pitch yesterday,
when Carl Icahn told Bloomberg TV's Trish Regan that Ackman was
"disingenuous" in his short against multi-level marketing firm,
Herbalife.
Last night, Ackman responded simply by detailing the root of
he and Icahn's animosity, a 2003 deal over Hallwood Realty. At the time, Ackman's hedge fund, Gotham
Partners, was going bust. He needed to do a deal so he called up Carl Icahn and
offered to sell him shares of Hallwood for $80 a share. It was trading at $60,
but Ackman thought it was worth $140.
The deal was, if Icahn sold the shares within 3 years and
made a profit of 10% or more, he and Ackman would split the proceeds. To ensure
that the deal went off without a hitch, Ackman and Icahn signed a 10 page
agreement they called "schmuck insurance."
Read all about it at:
http://www.businessinsider.com/ackman-icahn-hallwood-contract-2013-1#ixzz2J0FtFlnY
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