XO to study Icahn's latest takeover bid

XO (OTC BB: XOHO.OB) is once again having to consider yet another takeover bid by Carl Icahn, the company's majority stockholder.

The competitive service provider has formed a special committee of three independent directors to review Icahn's latest 70 cents per share cash offering.

Icahn holds a strong presence at XO. Not only is he the chairman of XO Holdings, but through an affiliate of ACF Industries Holding Corp., he owns the majority of XO Holding's stock.

Similar to the bid Icahn made in 2009, which he abandoned after a similar special committee deemed the offer as too low, the latest bid is also another low bid. In fact, the offering is actually lower than XO's 75 cents close on Thursday.

Even though XOs earnings rose up during the first nine months of 2010, Icahn believes he's making a good offer.

"I have over $1 billion of my own money" in XO preferred stock "which I believe not only has helped shareholders immensely but indeed has saved the company," Icahn said.

For more:
- Wall Street Journal has this article

Related articles:
XO rejects Icahn's latest buyout offer
Some fellow XO investors challenge Chairman Icahn

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