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Icahn Said to Purchase LightSquared Debt in Bet on Collapse

Billionaire Carl Icahn has purchased debt from Philip Falcone’s LightSquared Inc.’s bondholders as the satellite-broadband-service provider struggles to start service, two people familiar with the transaction said.

Icahn, along with investors Andrew Beal and David Tepper purchased $300 million in LightSquared debt sold by Farallon Capital Management LLC. last month, said the people, who declined to be named because they weren’t authorized to speak. The move may give Icahn control of LightSquared’s radio spectrum for less than Falcone originally paid.