type: timeline_event
In May 1985, Carl Icahn orchestrated a hostile takeover of Trans World Airlines (TWA), becoming a quintessential example of 1980s corporate raiding. Icahn acquired 50% of TWA through a leveraged buyout, eventually taking full control by 1988. His strategy involved systematically selling the airline's assets to repay acquisition debt, a practice known as 'asset stripping'. By 1991, he sold TWA's lucrative London routes to American Airlines for $445 million, personally profiting $469 million while leaving TWA with $540 million in debt. This case became emblematic of corporate raiding tactics that prioritized individual profit over corporate sustainability, ultimately contributing to TWA's bankruptcy in 1992.