--Icahn congratulates CEO Howard Solomon on victory
--Icahn affiliate owns 6.5% of Forest's outstanding stock
--Election comes shortly after Forest settled federal probe
(Updates with statement from Carl Icahn in second, third and
fourth paragraphs, refreshes stock quote.)
DOW JONES NEWSWIRES
Forest Laboratories Inc. (FRX) shareholders rejected activist
investor Carl C. Icahn's board nominees and elected Forest's entire
slate, the pharmaceuticals company said pointing to preliminary
results.
Icahn, who is well known for his efforts to push for change in
boardrooms, congratulated Chief Executive Howard Solomon on his
victory.
"I look forward to our next meeting," Icahn said in a short
email.
He added a statement that activism usually takes "longer than
you believe it will," especially in the biotech sector, citing as
examples past moves on Imclone Systems Inc., Genzyme Corp., and
Biogen Idec Inc. (BIIB).
"We greatly appreciate the strong support from our shareholders
and the confidence they have placed in us by electing all of our
highly qualified nominees," said Kenneth E. Goodman, who was
elected presiding independent director.
Also elected were Nesli Basgoz, Christopher J. Coughlin, Dan L.
Goldwasser, Gerald M. Lieberman, Lawrence S. Olanoff, Lester B.
Salans, Brenton L. Saunders, Howard Solomon and Peter J.
Zimetbaum.
Icahn affiliate High River L.P., which owns about 6.5% of the
company's outstanding stock, had nominated Alexander J. Denner,
Richard Mulligan, Lucian A. Bebchuk, and Eric J. Ende. But only
Mulligan, who currently serves on the boards of Biogen Idec Inc.
(BIIB) and Enzon Pharmaceuticals Inc. (ENZN), was recommended by
the proxy-advisory firm Glass Lewis & Co.
Forest Labs made headlines recently after it settled a federal
probe over misconduct in marketing of its antidepressant Celexa and
another drug last year and paid $313 million to resolve the matter.
The U.S. government earlier this month dropped efforts to force
Solomon to step down over the illegal marketing.
Last month, Forest Labs reported its fiscal first-quarter
earnings more than doubled on fewer charges and lower expenses as
revenue rose 8%.
Shares recently traded at $33.38, down 3.1%, amid a broad market
downturn.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com