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Money Face-Off: Kirk Kerkorian vs. Carl Icahn

This post is part of our Money Face-Offs feature. Let us know who you think comes out ahead in this head-to-head match-up, and check out our other Money Face-Off posts.

In this corner, hailing from Beverly Hills and Las Vegas, is 91-year old billionaire investor Kirk Kerkorian, one-time amateur boxer know as "Rifle Right Kerkorian." And in the other corner, hailing from New York, is 71-year-old corporate raider and activist private equity investor, Carl Icahn, who is never afraid to go toe to toe with an opponent.

Let's get ready to rumble.

Round One begins: Kerkorian drops out of school and becomes a pilot. He gets his start in business buying surplus planes after World War II, as well as Las Vegas properties, becoming the landlord of Caesar's Palace. Icahn, meanwhile, establishes his reputation as a corporate raider during his hostile takeover of TWA in 1985, and becomes one of the inspirations for the character of Gordon "Greed Is Good" Gekko, the antagonist of the 1987 film Wall Street.

Continue reading Money Face-Off: Kirk Kerkorian vs. Carl Icahn

Motorola will lose to Icahn

Motorola Inc. (NASDAQ:MOT) is going to give in to some if not all of Carl Icahn's demands. It's just a question of when and how much it will cost.

Ichan reported a 2.38 percent stake in Motorola yesterday, up from 1.39 percent in January, according to the Wall Street Journal (subscription required). His goal -- not suprisingly -- is for Motorola to spend $11.2 billion in cash to repurchase shares.

The one-time corporate raider wants a seat on Motorola's board, though stiring things up, not operations, is his strong suit. Motorola is urging shareholders to vote against Icahn, who would probably prefer not to attend one meeting of the company's board, or any other one.

Motorola shareholders should remember that Icahn has got his way with Blockbuster Inc. (NYSE:BBI), got Time Warner Inc. (NYSE:TWX) to increase its share buyback, and has gotten countless other companies to do what he wants, or pretty close to it.

The best thing that Motorola can do for its shareholders would be to figure out how to make Icahn happy. Otherwise, things will get real ugly real fast.

Symbol Lookup
IndexesChangePrice
DJIA-47.2410,244.02
NASDAQ-5.512,161.39
S&P 500-5.961,092.55

Last updated: November 12, 2009: 11:18 AM

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