Icahn Reports New Stakes In Genzyme, Forest Labs At Sept 30

Billionaire investor Carl Icahn reported new stakes in Genzyme Corp. (GENZ) and Forest Laboratories Inc. (FRX), while selling his investment in Endo Pharmaceuticals Holdings Inc. (ENDP), as of Sept. 30, according to regulatory filings.

Icahn, known as a corporate activist unafraid to challenge company management, reported total holdings valued at $7.33 billion in a quarterly filing with the Securities and Exchange Commission. Most of his largest holdings--including Biogen Idec Inc. (BIIB) and Motorola Inc. (MOT)--were unchanged in the quarter.

Icahn reported a new 1.45 million-share investment in Genzyme, a biotechnology company in which he previously owned a stake. He bought 1.5 million shares in late 2007, but sold out months later after the shares rose and company executives made it clear that they planned to remain independent rather seek a merger or sale to a bigger company.

This year, however, Genzyme shares haven't performed as well. The company's stock is down more than 25% since the beginning of 2009 and as multiple manufacturing difficulties have weighed on investor interest in it. Some Wall Street analysts have speculated if Genzyme's prolonged production problems could make it vulnerable to takeover by a large pharmaceutical company.

Icahn, who has a history of pushing drug makers to put themselves on the block, also acquired 1 million shares of specialty pharmaceutical company Forest Labs, amounting to an 0.33% stake.

Officials from Icahn's office weren't immediately available to comment on the newly reported stakes.

During the quarter, Icahn sold his entire stake in Endo Pharmaceuticals, which stood at 1.13 million shares as of the end of June.

As reported, Icahn trimmed his stake in Yahoo Inc. (YHOO) to about 62.9 million shares, representing about 4.48% of the Internet giant's outstanding shares. Icahn owned 75.6 million shares, about 5.4% of Yahoo, as of June 30. Last month, Icahn resigned from the company's board, citing a need to focus on other investments and saying he didn't believe it necessary to have an activist on the board.

Icahn had also already reported the sales of his 14.7 million-share stake in Guaranty Financial Group Inc. (GFGF), a holding company for Texas-based Guaranty Bank that ultimately failed and was seized by federal bank regulators and sold to a Spanish bank.

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.

Many investors that manage more than $100 million are required to file 13-Fs with their stock holdings within 45 days of 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. The third quarter's deadline is Monday.

-By Thomas Gryta, Dow Jones Newswires; 212-416-2169; thomas.gryta@dowjones.com

(Joseph Checkler contributed to this report.)

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