A federal judge ruled Friday that investor Carl Icahn can proceed with his tender offer for a portion of Reliance Group Holding’s debt. The offer will be subject to several amendments, however. The offer must include a statement disclosing Icahn’s current holdings in Reliance’s more than $500 million bond and bank debt.
The judge gave Icahn until today to revise his offer, followed by a five-day cooling off period once the offer is published. The judge also refused Reliance’s efforts to prevent Icahn from buying bonds on the open market. Reliance argued that Icahn would create a stampede to sell if he did so.
Icahn’s original tender offer for $40 million in Reliance debt was made in December, when he offered to buy 9 percent senior notes for $170 for each $1,000 in principal amount of the notes. The notes were selling for less than half that amount on the open market.