Icahn in July said he wanted to buy the 47 percent of XO he doesn’t already own; many experts considered the price he proffered – 55 cents – to be a big undervaluation of the communications service provider. XO’s board agreed.
The proposal from ACF Industries Holding Corp., an affiliate of Icahn and the majority holder of XO’s common stock, “substantially undervalues the company, and, therefore, the special committee does not support the proposal,” XO said in a press release.
However, the board said it would consider an offer “that recognizes the full value of the company and reflects the significant benefits that would accrue to ACF as a result of full ownership.”
XO shares last traded 71 cents at 1:30 p.m. Eastern.