Carl Icahn throws CIT a $6 billion lifeline

Billionaire investor Carl Icahn offered a $6 billion lifeline to struggling lender CIT Group Inc. (CIT).

In a letter Monday to CIT's board of directors, Icahn said he would give the company the loan to replace a debt restructuring plan CIT has submitted to its bondholders for approval.

Icahn, who is a CIT bondholder, said in his letter the $6 billion loan would save the company $150 million in fees. He also criticized the board for pushing an exchange offer that he said unfairly favors large bondholders at the expense of smaller investors and that also undervalues the company.