Icahn, Monarch Said to Target Blockbuster for Possible Buyout

Creditors including billionaire Carl Icahn and Monarch Alternative Capital LP are targeting Blockbuster Inc., the bankrupt movie-rental company, in a possible buyout for less than $300 million, a person familiar with the matter said.

Icahn and Monarch are Blockbuster creditors who helped to finance the bankruptcy, making them potential candidates to buy the company, said the person, who declined to be identified because the discussions are private. Icahn and Michael Weinstock, managing principal at New York-based Monarch, didn’t immediately return calls seeking comment after regular business hours yesterday.