Icahn to Boost Stake in Fairmont Chain

Billionaire investor Carl Icahn, who says Fairmont Hotels & Resorts Inc. should sell itself to a larger competitor, said he planned to launch a $1.19-billion cash offer to obtain a controlling 51% stake in the luxury hotel chain.

Icahn said he would offer to buy as many as 29.6 million shares of Fairmont for $40 a share. The purchase would boost his stake from 9.3%. Icahn had warned Fairmont that it needed to boost its share price.

Fairmont Chief Executive William R. Fatt said the company’s board “would strongly oppose any partial bid which is coercive by its very nature and does not treat all shareholders fairly and equally.”

Toronto-based Fairmont has more than 80 properties, mostly in North America, including Newport Beach and Santa Monica.