Icahn to Invest $200 Million More in WestPoint Home
Staff Staff -- Furniture Today, December 18, 2006
New York — In a show of support for WestPoint Home, investor Carl Icahn, who controls the major mill through his American Real Estate Partners holding company, said he will invest up to $200 million more in WestPoint.
American Real Estate Partners said it will spend $100 million to buy 1 million shares of a new issue of WestPoint Home preferred stock at $100 per share. Another 1 million shares priced at $100 a share will be made available to other investors — and if there are no takers for that second block of stock, Icahn's company said it will purchase those shares as well, for a combined investment of $200 million.
The news would seem to knock down speculation that Icahn has grown impatient with his WestPoint investment.
Icahn's cash commitment is the second dose of good news for the major mill in less than a month, following word the company had cut its third-quarter operating loss by more than half from the preceding second quarter. Additionally, sales edged up by 1.4% during the third quarter, making progress throughout the year in a tough retail environment.
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