Icahn late last week said he would pay 55 cents for every share that isn’t his, an amount double that of last Thursday’s market price when the offer was made. Icahn, by the way, also serves as XO’s chairman.
But finance gurus at the Wall Street Journal say Icahn is undervaluing XO stock by about $4.25 per share. And they make a good point: if Icahn wants any love from the public – i.,e, maintaining his activist credentials – “he should cut the public holders of XO in on some of that value,” the Journal wrote.
At 2:09 Eastern on Monday afternoon, XO’s shares were trading for 52 cents, up 4 percent.