Seeking Alpha

Icahn does victory lap following Forest deal

  • Actavis' $25B acquisition of Forest Labs (FRX) represents "another validation of the activist investment philosophy," gloats Carl Icahn (IEP).
  • The investor owns 11.4% stake in Forest and successfully agitated for change in a bruising battle with the company's previous management.
  • Someone who bought Forest shares on November 16, 2009 - coincidentally the date that Icahn's investment was first made public - and kept the stock until now would have realized a total return of 209% vs 84% for the S&P 500.
  • Over the period, Forest's market cap increased by almost $17B, a jump of over 193%.
  • "We believe that our activism did much to help bring about the great result," Icahn says.
  • However, he laments, Forest could have realized even more value had it listened to him from the get-go and not forced him to fight proxy battles.
Comments (1)
  • Uncle Pie
    , contributor
    Comments (3503) | Send Message
     
    so glad he made a few more $billions!
    19 Feb 2014, 01:35 PM Reply Like
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