Activist investor Carl Icahn on Tuesday said he has taken a "large position" in Allergan PLC and threw his support behind the pharmaceutical company's chief executive, Brent Saunders.

Shares added 2% to $240 shortly after market open.

The size of the stake wasn't immediately available.

"We were instrumental in bringing Brent on board as the new CEO of Forest Labs a few years ago and worked cooperatively and constructively with him to help increase value for all Forest shareholders," Mr. Icahn said in a statement on his website.

Forest was later acquired by Actavis, which then merged with Allergan. "While we at that time disposed of our position in Forest, we still have always maintained great respect for Brent," Mr. Icahn said.

Allergan and Pfizer Inc. in April terminated their planned $150 billion merger after the Obama administration took aim at the deal that would have moved the biggest drug company in the U.S. to Ireland to lower its taxes.

Mr. Saunders at the time criticized new Treasury Department rules that scuttled the tie-up with Pfizer as "un-American" and "capricious."

Write to Anne Steele at Anne.Steele@wsj.com

 

(END) Dow Jones Newswires

May 31, 2016 10:15 ET (14:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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