Feb. 19, 2014, 9:11 AM
- 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.
IEP vs. ETF Alternatives
Icahn Enterprises LP is a diversified holding company owning subsidiaries engaged in nine primary business segments: Investment, Automotive, Energy, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion.
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