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Palm Coast Real Estate Developer WCI in Transaction Talks with Icahn
Talks revealed in regulatory filing on Friday
By Toby Tobin
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facebookPalm Coast, FL – June 23, 2008 – WCI Communities, Bonita Springs based real estate developer with condominiums in the Palm Coast luxury oceanfront community of Hammock Dunes, is reported to be in discussions with chairman and major stockholder, Carl Icahn. In a regulatory filing on Friday, Icahn said his firm is "engaging in discussions" with a special committee of WCI's board to evaluate "alternative restructuring proposals… .Such discussions may ultimately lead to (Icahn's firm) entering into a transaction with the issuer (WCI)."
Icahn owns 14.5% of WCI's 42 million shares, for which he reportedly paid from $18 to $20 per share. Icahn offered to buy the remaining shares for $22 in April '07. The WCI board rejected his offer as "opportunistic and inadequate." Facing a deteriorating condo market and an ongoing credit crisis, WCI stock tanked, trading at $1.50 today. Icahn's next move will depend on how confident he is in the Florida real estate market's future.
