Icahn Chastises CIT (CIT) Board, Offers To Underwrite $6 Billion Loan

Billionaire investor Carl Icahn submitted a letter to the Board of Directors of the troubled lender, CIT Group (NYSE: CIT), highlighting the incompetence of those in charge.

After stating that the current board has lead the company into the fire, he offered to underwrite a $6 billion loan to help relieve the companies stress. The loan could potentially save the company $150 million.

Icahn took CIT to task in the letter by stating that the lender was "shamelessly" offering large unsecured bondholders to the chance to purchase $6 billion in secured loans well below fair market value. The same right given to the largest bondholders is not being given to smaller bondholders. "This is reminiscent of the old Tammany political machine's vote-getting tactics," Icahn stated.

It was made clear by Icahn that if CIT is not willing to work with him due to a strained relationship between himself and the company, then he is certain that many other banks would not hesitate to underwrite the loan while giving large saving to the troubled lender.

CIT was unavailable for comment following Icahn's letter.

Shares of CIT are up 12% in early trading on the news.

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