Icahn Outbids Penn for Fontainebleau

LAS VEGAS (TheStreet) -- Carl Icahn has offered a total of $156.5 million to buy the unfinished Fontainebleau Las Vegas resort, a higher amount than that offered by Penn National Gaming(PENN Quote).

The billionaire investor placed a bid at a bankruptcy auction of $105 million plus $51.5 million in funding to resume construction on the resort, which already has cost more than $2 billion.

Stockpickr Tools Carl Icahn's Portfolio

Last week, Penn offered $50 million for Fontainebleau, plus $51.5 million. According to Reuters, Penn dropped out after raising its bid to $145 million, a company spokesman said Monday.

Developers filed for bankruptcy on Fontainebleau, which was about 70% complete, in June. The resort originally was projected to cost $3 billion.

The auction is expected to be held in January.

-- Reported by Joseph Woelfel in New York .

Follow TheStreet.com on Twitter and become a fan on Facebook.