Icahn Increases Stake in Philip Services

A group including financier Carl C. Icahn has increased its stake in Philip Services Corp. to 48.3%, according to an amended filing with the Securities and Exchange Commission.

The group held a 46.7% stake in Philip Services the end of this summer.

Icahn said in the filing that he has talked with the company and other shareholders, including Cerberus Partners L.P., about restructuring Philip Services' business and that such talks would continue.

Among the issues being discussed, Philip Services is seeking waivers for covenants on some of its debt securities, the filing said.

The Icahn group is "working toward developing proposals for the restructuring of (Philip Services') debt burden with a view to making its business more competitive," the filing said.

In August, Icahn's group said it had become increasingly concerned about the performance of Philip's metals business, which reinforced the group's belief that the company should sell that business. In addition, the group said it may seek control of Philip Services after purchasing additional shares, according to press reports.

Icahn purchased the securities under a nonbinding oral agreement with Cerberus Partners L.P. that says that if either party has the opportunity to acquire additional securities, the other could acquire an agreed-upon portion of the securities. Icahn had the right to acquire two-thirds of the Philip securities, the filing said.

Philip Services, Hamilton, Ontario, Canada, is an integrated industrial services and metals recovery company with operations throughout the U.S., Canada and Europe.