Money goes to money.
The Daily Telegraph reports that Icahn, who is Forest’s second largest shareholder with an 11.3% stake in the company, has spent years agitating the business to make a deal, and appears finally to have got his way after securing a seat on its board last summer.
Actavis offered Forest $89.48 a share in a mixture of cash and stock, marking a 25% premium on the company’s closing price on Friday – the last day of active trading in New York.
Shares in Forest jumped more than 30pc to a high of $97.51 on the news, swelling the value of Mr Icahn’s stake by $613m, amid speculation that Activis’ interest in the company could flush out a rival offer. Analysts had been expecting pharmaceuticals behemoth AstraZeneca to make a bid, before Actavis tabled its offer. Shares in the latter company rose 8pc to $207 in morning trading in New York on Tuesday.
Investors in Forest stand in line for a major payout regardless of whether there is a bidding war, however.
'This is a huge win for all shareholders of Forest Labs and yet another validation of the activist investment philosophy in general,' Icahn said in a statement.
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