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Fairmont Denounces Icahn's Partial Takeover Bid

TORONTO-Locally based public company Fairmont Hotels & Resorts Inc. says it will oppose an announced partial takeover bid by affiliates of billionaire Carl Icahn because it would not treat all shareholders fairly an equally. Fairmont shares on Friday were up $2.09 or 5.39% to $40.88 in early afternoon trading.

By Brian K. Miller | Updated on December 02, 2005

TORONTO-Locally headquartered Fairmont Hotels & Resorts Inc. today denounced billionaire Carl Icahn’s stated intention of making a partial takeover bid for a controlling interest of the public hotel company’s outstanding common shares. Fairmont chief executive William Fatt says Fairmont’s board would “strongly oppose” any partial bid, which would be “coercive by its very nature” and “does not treat all shareholders fairly and equally.”

The partial takeover bid would be attempted by Icahn Partners LP and Icahn Partners Master Fund LP, which together already own about 9.3% of Fairmont’s common shares, according to Fairmont. Icahn said Friday the companies plan to launch a $1.18-billion cash offer to obtain a controlling 51% in the luxury hotel chain, which equates to 29.6 million shares at $40 per share. Fairmont shares were up $2.09 or 5.39% in midday trading Friday to $40.88. About 3.62 million shares have traded hands, which is more than five times the stock’s average daily volume.

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