Tuesday, June 26, 2012

Goldman, Carl Icahn fight over fees

In a heavyweight battle, Goldman Sachs and activist hedge fund manager Carl Icahn are tussling over $18.5 million in fees.

Recall that CVR Energy, the oil company controlled by Carl Icahn, hired Goldman Sachs in March to advise it on how to deal with Icahn's tender offer. Last month, Icahn "won control of CVR with an 80 percent stake after a majority of shareholders accepted his $30 per share tender offer, which valued the Sugar Land, Texas-based company at about $2.6 billion," notes Reuters.

When Goldman Sachs bankers tried to get paid, however, CVR requested an invoice, which Goldman sent on May 3. But four days later, the company advised Goldman Sachs that "Icahn had instructed CVR not to pay the invoice," according to the complaint. Former Goldman Sachs banker Matt Levine, now a pundit, says Goldman Sachs may be on firm legal ground. And "Goldman's 52.5bps fee here doesn't seem way out of line," he writes....

More?  Go to http://www.fiercefinance.com/story/goldman-sachs-carl-icahn-battle-over-fees/2012-06-25?utm_medium=nl&utm_source=internal

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