At least $25-30 million of XOCommunications is believed to have traded in the high 40s this week, falling from the low 50s as the company's restructuring negotiations hit a snag. Financier Carl Icahn has pulled his offer for the company off the table, according to reports, but some market players suggested that he will come back to ensure the value of his bond investments. A $15-20 million piece of the name was sold by a bank in the 46-47 context this week.
The company's bank group would like a strict covenant package to keep a close control over the company as it restructures, but Icahn is seeking free reign to guide XO through its reorganization, said one sell-side analyst. The company is currently working through its other options which include a bid from Forstmann Little & Co and Telefonos de Mexico and the company's stand alone plan. If no decision is made XO may be forced to liquidate its assets, a move that the analyst said "would get nobody anywhere." Calls to Wayne Rehberger, XO senior v.p. and cfo, were not returned by press time. Calls to Carl Icahn were not returned by press time.