Icahn’s 2008 YTD Activism Summary

August 12th, 2008
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Mr. Carl Icahn has had a busy year of wins and losses. This month he has raised his stake in the biotechnology company Biogen Idec to 6.03%, stating that he believes that the shares are undervalued. Mr. Icahn has said that he plans to `discuss general business issues relating to shareholder value' with the company. This comes after he was defeated in a proxy battle with Biogen's management in June; Mr. Icahn lost the support for his 3 nominees to Biogen's board. Last October he was able to prod Biogen into considering selling itself; however representatives from Biogen said that it could not find suitable buyers.

Things are not fairing well for Mr. Icahn's hedge funds either. They are reporting losses for the first time since they were founded in 2004. The funds are down roughly 6% for the year with the biggest loss stemming from their investment in Motorola. The shares of Icahn Enterprises have fallen 50% over the year.

However it is not all bad news for the activist investor. Cristol-Myers Squibb made a $60/share offer for ImClone Systems where Mr. Icahn is Chairman. Mr. Icahn has said that the offer is still too low to consider, however most analysts believe that this may be a strategy to get Bristol-Myers to increase their bid. A few days after Mr. Icahn received the good news about the bid for ImClone Systems, which helped spike the company's share price nearly doubling the dollar value of his holding, WCI Communities filed for bankruptcy. WCI is a residential homebuilder where Mr. Icahn is chairman. Mr. Icahn holds 14.5% stake in the company which he bought for roughly $112 million in early 2007. Mr. Icahn has stated that the company has made all attempts to avoid bankruptcy however it is likely that the company's $1.8 billion of debt may soon be in default. Mr. Icahn is still hoping for a Yahoo/Microsoft merger however as time passes the deal looks less likely.
For Detailed Investor Profiles on these Investors, click below:
Icahn Associates (Carl Icahn)
Related People: Alexander J. Denner; Brett Icahn; Carl Icahn; Keith A. Meister*
Related Entities: High River Limited Partnership; Icahn Partners; Icahn & Co Inc; Icahn Associates; Icahn Enterprises (formerly American Real Estate Partners); Icahn Fund Ltd; Icahn Partners LP


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