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Even the USX foray pales in comparison with the size of Icahn's latest target: Texaco (1986 sales: $31.6 billion). Icahn began buying shares in the company when it declared bankruptcy last spring after failing to reach any settlement with Pennzoil, which had won a $10.3 billion judgment against Texaco in a Texas court. Icahn got his chance to help break the impasse in December, when Bankruptcy Judge Howard Schwartzberg ruled that Texaco's shareholders could strike their own deal with Pennzoil, with or without the approval of Texaco management. Before long, spurred in part by Icahn's repeated phone calls and meetings with Pennzoil officials and Texaco investors, the two sides agreed to the $3 billion settlement.
As Texaco's biggest shareholder, Icahn controls 14.8% of the nation's third largest oil firm (after Exxon and Mobil). Nevertheless, Texaco has blocked his attempts to play a direct role in planning the reorganization. The company's proposal, which Schwartzberg approved last week, must now be accepted by Texaco stockholders. Icahn says he may team up with other investors to acquire a larger stake in the firm, and may also attempt to put his own hand-picked directors on the Texaco board.
Despite his wealth, Icahn is not about to be distracted from the chase by a taste for rich people's toys. Says he: "Yachts and fleets of limousines and private airplanes don't appeal to me at all. I want a comfortable life. What's the point of all that hassle?" The only son of a New York City schoolteacher and a lawyer, Icahn was the first student from Far Rockaway High School in Queens to be accepted by Princeton, where he studied philosophy. His mother worried about his future when he dropped out of medical school.
Icahn divides his time between weekends with his family at their 20-room home north of New York City and weekdays at a Manhattan apartment, just a two- block walk from his office. The fearsome raider is so shy that he is sometimes reluctant to brush off virtual strangers who approach him in public. While the strain of managing so many ventures clearly shows in his face, Icahn professes no interest in slowing down. Referring to his efforts to topple what he calls "arrogant, incompetent managements," he says, "There is a great fulfillment that you can do something about it. Also, you can make money doing it. But don't underestimate the fun of it. You're playing the toughest game in the world."