Icahn Increases Exposure To Energy Companies In 2Q
August 16 2010 - 01:32PM
Dow Jones News
Billionaire investor Carl Icahn widened his exposure to
energy-related holdings in the second quarter, according to
regulatory filings Monday.
Icahn, known as a corporate activist who holds his shares
through various funds, aggressively boosted his stake in Chesapeake
Energy Corp. (CHK) and reported new investments in NRG Energy Inc.
(NRG) and Anadarko Petroleum Corp. (APC), as of June 30.
At that time, Icahn owned 12.7 million shares of Chesapeake
Energy, up from 2.1 million shares at the end of March. The
holdings give him a 2% stake in the natural-gas company and place
him among the top-10 shareholders. He reported his initial
investment in the company last quarter.
In the latest quarter, he reported a new two-million-share stake
in oil and natural-gas company Anadarko, amounting to less than
0.5% of the company, and a 2.4-million-share investment in power
producer NRG Energy, a 1% holding.
Icahn also showed activity in the technology sector, where he
has been active in the past. He reported a 9.5-million-share
holding in Lawson Software Inc. (LWSN), or a 5.9% stake. On June 8,
Icahn had filed that he beneficially owned 15.6 million shares of
the company, with some portion of that being in call options.
Icahn reported a 7.8-million-share investment in chip-design
software company Mentor Graphics Corp. (MENT), a 7.3% stake. In
July, Icahn reported that he beneficially owned 14 million shares
of the company, with a portion being call options.
In both cases, he has called the stocks undervalued and said he
wants to meet with management.
He reported a new stake in Micro Systems Inc. (MCRS) of 654,960
shares, amounting to less than 1% of the total outstanding.
Icahn also reported a new 2.4-million-share stake in Smith &
Wesson Holding Corp. (SWHC), equaling about 4% of the firearms
maker.
In the period, Icahn reported no change to his biotechnology
holdings, including stakes in Biogen Idec Inc. (BIIB), Genzyme
Corp. (GENZ) and Amylin Pharmaceuticals Inc. (AMLN), all companies
in which he has board representation.
He reported no stake in Adventrx Pharmaceuticals Inc. (ANX)
after having a 4.3-million-share investment, or 30% of shares
outstanding, in the small specialty pharmaceutical company last
quarter.
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.
Some of the holdings reported on Icahn's 13-F are outdated,
because he often buys more than 5% of companies' outstanding
shares, forcing him to make more frequent filings regarding those
holdings.
Since the end of the second quarter, Icahn exercised options to
increase his stake in Hain Celestial Group Inc. (HAIN) by two
million shares, bringing his total ownership to 5.65 million
shares, or 13.8% of shares outstanding. Icahn reached a deal with
the food company to put two people on its board, including his son
Brett.
Meanwhile, Icahn is trying to take over Lions Gate Entertainment
Corp. (LGF) and recently extended his tender offer of $6.50 a share
until Oct. 22, as he fights the film studio in Canadian court. He
is attempting to block a July debt-to-equity swap that essentially
shrinks his stake in Lions Gate as it tries to thwart the buyout
effort.
Earlier this month, Icahn bought 10.2 million shares of Motorola
Inc. (MOT), a telecommunications company that is preparing to split
itself in two. The purchase boosted his stake to a total of 232.2
million shares, or 9.99% of shares outstanding.
Icahn has sharply increased his stake in recent months, as some
have speculated that he sees Motorola's value rising when it
completes its split, which is set for early next year. At the end
of 2009, he owned 119.8 million shares.
Many investors that manage more than $100 million are required
to file 13-Fs with their stock holdings 45 days after 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.
-By Thomas Gryta, Dow Jones Newswires; 212-416-2169;
thomas.gryta@dowjones.com
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