After a nearly three-year campaign at Forest Laboratories Inc that spanned two proxy battles and the ousting of a chief executive, billionaire activist investor Carl Icahn has once again ended up on top. The proposed $25 billion acquisition of Forest Labs by generic drug maker Actavis Plc is the biggest deal yet to emerge from Icahn's many forays into healthcare.Icahn, Forest's second-largest shareholder, proclaimed the deal to be "yet another validation of the activist investment philosophy" and said the company's shareholders had realized a 209 percent return since his earliest stake was disclosed in November 2009."He's a smart and astute investor and he gets the strategic rationale of this deal," Forest Labs Chief Executive Brent Saunders said of Icahn. "My sense is he will continue to be a good shareholder, albeit in a smaller position."Saunders and Actavis CEO Paul Bisaro described in an interview how the deal came together quickly after they met during a social event at a J.P. Morgan healthcare conference in January. They sealed the agreement this weekend, helped by snowstorms that confined their teams to a New Jersey hotel.
Shares of ACT traded higher by 5.0% or $9.59/share to $201.47. In the past year, the shares have traded as low as $82.02 and as high as $193.21. On average, 1360750 shares of ACT exchange hands on a given day and today's volume is recorded at 14968326.
Forest Laboratories, Inc. (Forest) develops, manufactures and sells branded forms of ethical drug products, which requires a physician's prescription. Shares of FRX traded higher by 27.52% or $19.65/share to $91.04. In the past year, the shares have traded as low as $35.22 and as high as $72.40. On average, 2216920 shares of FRX exchange hands on a given day and today's volume is recorded at 36958032.
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