An investor in XO Holdings Inc. (OTC:XOHO) shares filed a lawsuit in State Court saying billionaire Carl Icahn's offer to buy XO Holdings remaining stock for $0.70 per share represents a net loss for investors and should be blocked.
According to the complaint the plaintiff alleges that the defendants breached fiduciary duty arising out of the attempt to take over XO Holdings Inc at an unfair price via an unfair process.

On Friday, Jan 21, 2011, XO Holdings Inc. said, that it has formed a special committee of three independent directors to evaluate a takeover bid made on January 19, 2011 by ACF Industries Holding Corp., which is an affiliate of Carl C. Icahn, to acquire, either directly or through an affiliate, the remaining shares of XO Holdings Inc. (OTC:XOHO) at 70 cents per share in cash.
But Mr. Icahn is the Chairman of XO Holdings and, through ACF Holding and its affiliates, is the holder of a majority of the shares of XO Holdings' common stock. In fact, Carl Icahn, ACF Holding and its affiliates are holding over 91% of the outstanding shares of XO. Icahn stated that in no event will he vote his shares in favor of another bid by a third party.
In addition the offer is 6.7% below the price that XO’s shares traded at the day prior to the announcement of this offer. In fact XOHO shares traded recently multiple times above the current offer. Shares of XO Holdings Inc. traded as recently as May and April as high as $0.80 per share

Furthermore XO Holdings’ performance for its shareholders improved over the past couple years. XO Holdings Inc. (Public, OTC:XOHO) 12months Total Revenue went from $1.416billion in 2006 to $1.521billion in 2009. Its Net Income went from a Net Loss of $131.89million in 2006 to a Net Income of $21.84million in 2009. For the first three months in 2010 XO Holdings Inc. reported a combined nine months Total Revenue of $1.138billion.