Icahn Reports New Stakes In Genzyme, Forest Labs At Sept 30
By Thomas Gryta, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Billionaire investor Carl Icahn reported new stakes in
Genzyme Corp. (GENZ) and Forest Laboratories Inc. (FRX), while selling his
investment in Endo Pharmaceuticals Holdings Inc. (ENDP), as of Sept. 30,
according to regulatory filings.
Icahn, known as a corporate activist unafraid to challenge company management,
reported total holdings valued at $7.33 billion in a quarterly filing with the
Securities and Exchange Commission. Most of his largest holdings--including
Biogen Idec Inc. (BIIB) and Motorola Inc. (MOT)--were unchanged in the quarter.
Icahn reported a new 1.45 million-share investment in Genzyme, a biotechnology
company in which he previously owned a stake. He bought 1.5 million shares in
late 2007, but sold out months later after the shares rose and company
executives made it clear that they planned to remain independent rather seek a
merger or sale to a bigger company.
This year, however, Genzyme shares haven't performed as well. The company's
stock is down more than 25% since the beginning of 2009 and as multiple
manufacturing difficulties have weighed on investor interest in it. Some Wall
Street analysts have speculated if Genzyme's prolonged production problems could
make it vulnerable to takeover by a large pharmaceutical company.
Icahn, who has a history of pushing drug makers to put themselves on the
block, also acquired 1 million shares of specialty pharmaceutical company Forest
Labs, amounting to an 0.33% stake.
Officials from Icahn's office weren't immediately available to comment on the
newly reported stakes.
During the quarter, Icahn sold his entire stake in Endo Pharmaceuticals, which
stood at 1.13 million shares as of the end of June.
As reported, Icahn trimmed his stake in Yahoo Inc. (YHOO) to about 62.9
million shares, representing about 4.48% of the Internet giant's outstanding
shares. Icahn owned 75.6 million shares, about 5.4% of Yahoo, as of June 30.
Last month, Icahn resigned from the company's board, citing a need to focus on
other investments and saying he didn't believe it necessary to have an activist
on the board.
Icahn had also already reported the sales of his 14.7 million-share stake in
Guaranty Financial Group Inc. (GFGF), a holding company for Texas-based Guaranty
Bank that ultimately failed and was seized by federal bank regulators and sold
to a Spanish bank.
Monday's disclosures don't include a complete picture of Icahn's holdings
because he has been permitted to keep some of his investments confidential.
Prominent investors are sometimes permitted to temporarily withhold information
from their quarterly reports if the disclosure would interfere with an
investment strategy.
Many investors that manage more than $100 million are required to file 13-Fs
with their stock holdings within 45 days of the end of a given quarter, giving
the public its freshest possible glimpse into the portfolios of well-known money
managers. Most hedge-fund managers and others wait until the last possible
moment to make these filings. The third quarter's deadline is Monday.
-By Thomas Gryta, Dow Jones Newswires; 212-416-2169; thomas.gryta@dowjones.com
(Joseph Checkler contributed to this report.)
(Updates throughout with details, background)
By Thomas Gryta
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Billionaire investor Carl Icahn displayed his continued
interest in drug companies in a regulatory filing on Monday, reporting new
stakes in Genzyme Corp. (GENZ) and Forest Laboratories Inc (FRX).
Icahn reported a new 1.45-million-share investment in Genzyme, a biotechnology
company in which he previously owned a stake. He also acquired one million
shares of specialty pharmaceutical company Forest Labs, amounting to a 0.33%
stake. His total portfolio holdings were valued at $7.33 billion.
Icahn, known as a corporate activist unafraid to challenge company management,
made the disclosures in a Securities and Exchange Commission filing that covered
his portfolio through Sept. 30. The filing, known as a 13-F, showed Icahn
actively investing on his often-stated belief that Big Pharma will need to keep
buying small drug developers to replenish its pipeline of future products. In
the past, Icahn has played a key role in making such transactions happen. For
example, he was involved in the 2007 sale of MedImmune to AstraZeneca PLC (AZN)
for $15.6 billion and last year's $4.5 billion acquisition of ImClone Systems to
Eli Lilly & Co. (LLY), and he has pushed--so far unsuccessfully--for Biogen Idec
Inc. (BIIB) to make a deal.
Icahn bought his stake in Genzyme amid a rough patch for the company. Shares
of Genzyme have dropped more than 25% so far this year as multiple manufacturing
difficulties weigh on investor interest in it. Some Wall Street analysts have
speculated that Genzyme's prolonged production problems could make it vulnerable
to takeover by a large pharmaceutical company. In 2007, Icahn bought 1.5 million
shares in Genyzme but sold them a few months later after the shares rose and
company executives made it clear that the company planned to remain independent.
Icahn also bought a stake in Forest, which generally acquires new products
through either acquisitions or licensing deals with other companies rather than
developing its own drugs. Although shares are up 58% from their March lows, the
company is looking to replace sales of its antidepressant, Lexapro, which makes
up the majority of its revenue, prior to generic competition in 2012.
Most of his largest holdings--including Biogen and Motorola Inc. (MOT)-- were
unchanged in the quarter. He did, however, no longer report a stake in Endo
Pharmaceutical Holdings Inc. (ENDP), which stood at 1.13 million shares as off
June. Officials from Icahn's office weren't immediately available to comment on
the newly reported moves.
As reported, Icahn trimmed his stake in Yahoo Inc. (YHOO) to about 62.9
million shares, representing about 4.48% of the Internet giant's outstanding
shares. Icahn owned 75.6 million shares, about 5.4% of Yahoo, as of June 30.
Last month, Icahn resigned from the company's board, citing a need to focus on
other investments and believing it wasn't necessary to have an activist on the
board.
Icahn had also already reported the sales of his 14.7-million-share stake in
Guaranty Financial (GFGF), a holding company for Texas-based Guaranty Bank that
ultimately failed and was seized by Federal bank regulators and sold to a
Spanish bank.
Monday's disclosures don't include a complete picture of Icahn's holdings
because he has been permitted to keep some of his investments confidential.
Prominent investors are sometimes permitted to temporarily withhold information
from their quarterly reports if the disclosure would interfere with an
investment strategy.
Many investors that manage more than $100 million are required to file 13-Fs
with their stock holdings within 45 days of the end of a given quarter, giving
the public its freshest possible glimpse into the portfolios of well-known money
managers. Most hedge-fund managers and others wait until the last possible
moment to make these filings. The third quarter's deadline is Monday.
-By Thomas Gryta, Dow Jones Newswires; 212-416-2169; thomas.gryta@dowjones.com
(Joseph Checkler contributed to this report)
(END) Dow Jones Newswires
11-16-091903ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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