Icahn More Than Doubled Genzyme Stake In 1Q; Buys Chesapeake
May 17 2010 - 7:14PM
Dow Jones News
Billionaire investor Carl Icahn more than doubled his stake in
Genzyme Corp. (GENZ) and reported an initial investment in
Chesapeake Energy Corp. (CHK) as of March 31, according to
regulatory filings.
Icahn, known as a corporate activist who holds his shares
through various funds, also continued to shed his stake in Yahoo
Inc. (YHOO) and reported no holdings in CIT Group Inc. (CIT). Many
of his large holdings--such as Biogen Idec Inc. (BIIB) and
Federal-Mogul Corp. (FDML)--remained unchanged in the quarter.
His increased stake in Genzyme, up 13.1 million at the end of
the quarter from 4.8 million at the end of 2009, comes as Icahn has
nominated himself and three others to the company's board in a
bitter proxy battle that will be decided at a June 16 shareholder
meeting. The biotechnology company has been plagued by regulatory
and production issues mostly stemming from repeated problems at its
main plant. Its stock dropped 26% in 2009.
In buying a stake in natural gas company Chesapeake Energy,
Icahn may be making a bet on the price of the commodity, which rose
over the winter due to cold-weather related demand for heating, but
has since dropped amid moderate spring temperatures and increased
supply.
Icahn wasn't immediately available for comment on the
filings.
He has been trimming his Yahoo stake since last year and again
sold shares in the first quarter. His holdings stood at 4 million
shares at the end of March, down from 12 million at Dec. 31. In the
fall, he resigned from Yahoo's board, saying he didn't believe it
was necessary to have an activist on the board.
Icahn reported no stake in CIT Group, down from 12.1 million
shares at Dec. 31. Last year, he bought debt in the commercial
lender and pushed for changes to its board as it went through
bankruptcy. When CIT emerged, Icahn was one of the largest
shareholders of the company.
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Some of the holdings reported on Icahn's 13-F are outdated,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 quarter ended, Icahn reported a nearly 12%
stake in food company Hain Celestial Group Inc. (HAIN) and sharply
increased his stake in Motorola Inc. (MOT), which is preparing to
split itself in two.
He has been buying shares of videogame maker Take-Two
Interactive Software (TTWO) and owns about 11.8 million shares, or
about a 14% stake, as of the beginning of April. Icahn hasn't made
his intentions clear, although there has been speculation that
Icahn will push the company to sell itself.
He also sold much of his stake in Blockbuster Inc. (BBI, BBIB)
during the quarter and continued to do so in early April, when he
owned 71,749 of the class A 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
Blockbuster (NYSE:BBI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Blockbuster (NYSE:BBI)
Historical Stock Chart
From Apr 2023 to Apr 2024