Warren Lichtenstein grew up idolizing Carl Icahn. In heading hedge fund firm Steel Partners, Lichtenstein, 44, is bold, hardnosed and prophetic—just like Icahn. In 2004, Lichtenstein stunned Wall Street when he embarked on what would turn into a long proxy fight against GenCorp. In Asia, he has been the harbinger of shareholder activism, up till then a road not traveled in the region. Lichtenstein has even teamed up with his hero; he and Icahn both campaigned for change at tobacco maker KT&G.

But that admiration is being repaid with a proxy fight that is threatening to wrest control of Steel from Lichtenstein. Billionaire Icahn, a Steel investor, is suing Lichtenstein for a plan to make New York-headquartered Steel a publicly traded company. Lichtenstein is planning to float Steel via merger with unlisted Utah company WebFinancial Corp. The move would copy the tactic GLG used when the London hedge fund became a publicly traded company through a merger with Freedom Acquisition, which was listed on the American Stock Exchange.

Corporate raider Icahn is contending Lichtenstein pulled a “bait and switch” because Lichtenstein had told him he would not consider getting listed until February. Bank of America is also suing, alleging Lichtenstein should return investor money following a rough 2008.

Icahn is also calling public attention to his private fight with Lichtenstein; he issued a press release asking Steel clientele to call him in order to schedule a meeting. Meanwhile, Steel has maintained the legal action has no merit.

Lichtenstein has long faced criticism for being a value extracting investor concerned with his own profit, rather than with shareholder interest. This latest allegation, from his idol no less, is consistent with that unflattering assessment.