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Carl Icahn is certainly a tough buyout player. He has made billions from this game, so when he makes a bid, you can usually count on it.
But in the case of his offer for Reckson Associates Realty Corporation (NYSE: RA), things didn't turn out so well. In order to pull off the deal, he tried to partner with two real estate firms, Harry Macklowe and Mack-Cali Realty.
Well, these firms bailed. But Icahn still wants Reckson and has made his own offer. It includes $1 billion in cash, as well as convertible securities backed by American Real Estate Partners, one of Icahn's holdings. Interestingly enough, this structure looks like a typical deal from the 1980s. Then again, Icahn is a veteran deal maker and was a superstar during that time.
We'll see how this plays out. Reckson's stock opened down about 5% on news of the initial offer, but is now climbing back up. Can Icahn work his magic again?
Tom Taulli is the author of various books, including the Complete M&A Handbook and operates DealProfiles.com.
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