Icahn Checks Out Of Blockbuster

Movie Rentals

Activist investor Carl Icahn has sold 75 percent of his holdings in Blockbuster (NYSE: BBI) — at a time when the rental chain probably needs his support the most. SeekingAlpha says he’s sold about 14 million of the 20 million shares he held just last week at the fire-sale prices of 24 and 25 cents a share, cutting his stake in the company to 2.5 percent from 10 percent.

Likely not a coincidence: Blockbuster warned earlier this month that it might have to file for Chapter 11 bankruptcy protection in order to restructure its debt — and the WSJ says the company needs to make a big debt payment tomorrow. Not a sign of confidence from a man who once served on Blockbuster’s board and had invested nearly $200 million in the video rental company over the last five years.

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