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The Wall Street Journal: Icahn contests bid to take AmTrust private, sending shares surging

Activist investor Carl Icahn is contesting an strive via the principle homeowners of AmTrust Financial Services Inc. to take the corporate inner most, pronouncing the corporate hasn’t treated its public shareholders rather.

In a letter to AmTrust Thursday, Icahn says the Karfunkel and Zyskind households, which control the New York workers’ compensation insurer, are “blatantly taking advantage” of the corporate’s minority shareholders. Icahn disclosed Thursday that he owns a nine.38% stake in AmTrust AFSI, +0.60%   and says the corporate’s board should push back a shareholder vote on its $2.7 billion going-private deal, which is currently scheduled for June four.

Icahn said AmTrust “stealthily” set a record date of April five for voting at the transaction however didn’t inform shareholders or the marketplace about it. That had the effect of disenfranchising investors who purchased tens of millions of AmTrust stocks since then with the expectation that they might be capable of vote at the deal, Icahn said. “Such a vote is absurd and devoid of fairness,” Icahn said. He said he's assessing his prison options “to correct the manifest injustice that will happen if the board fails to switch the record and special meeting dates.”

AmTrust stocks jumped in after-hours trading at the news. Shares had been trading after hours at $14.25, up 6.1% since Thursday’s close and transferring above the $13.50 value presented within the going-private deal. The stocks won 0.6% in common trading Thursday.

An expanded version of this record appears on WSJ.com.

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