As Allergan shares languish, Icahn unloads most of his $700M stake
When activist investor Carl Icahn picked up a big stake in Allergan in May, it was one of his biggest buys of the year—and far from a move against current management, as is his wont. It was an endorsement of CEO Brent Saunders.
Now, Icahn has cashed out.
At the end of June, according to securities filings cited by The Wall Street Journal, Icahn had $700 million socked into Allergan shares. By the end of September, that stake had dwindled to just $98 million.
Saunders has enjoyed Icahn’s confidence before. During a proxy fight with Forest Laboratories’ board several years ago, Icahn and his supporters helped bring in Saunders to take over from longtime chief Howard Solomon.
When Forest sold soon after, shareholders reaped “massive gains,” Icahn said earlier this year—including, of course, Icahn himself. Apparently, Icahn figured he’d see the same sort of boon from Allergan under Saunders’ leadership.
Unfortunately, Allergan doesn’t have a megamerger partner on tap to deliver quick M&A gains, now that Pfizer and its $160 billion takeover is off the table. Rumors now put Allergan in the buyers’ seatfor deals big and small. And the company’s shares haven’t performed at their best this year. Starting the year trading at $300-plus, Allergan closed at $202 Monday.
Read more @ http://apintuslabs.com/