Icahn Has A Happy Day, Racks Up Gains of At Least $350M

Activist investor Carl Icahn is having a nice day today. Here's why:

1. Bristol -Myers (NYSE: BMY) sent Mr. Icahn a letter presenting a $60 per share offer for ImClone Systems (Nasdaq: IMCL). Icahn is the Chairman of ImClone, and owns 11,669,544 shares of the biotech company. With shares of ImClone trading up to 37%, to $63.84 today, Icahn made a cool $200+ million just today in the stock. Icahn's cost basis on ImClone is about $33 per share, suggesting Icahn could make a 100% profit on his trade if ImClone is sold for around $66 per share. If the company is sold for $60, that's still a 80% profit.

2. Motorola Inc. (NYSE: MOT), a stock Carl has been involved with for a long time, is up 12% after topping Q2 estimates and providing guidance above the Street. Carl is up about $126 million in MOT today, although he is still underwater in the stock.

3. Amylin Pharmaceuticals Inc. (Nasdaq: AMLN), a stock Carl has been invloved with and has pushed to put itself up for sale, is up 11% today on speculation it could be the next biotech takeover target following the ImClone news. Carl is up about $22 million today on the trade.

Large Bronco Drilling (BRNC) Holder Wexford Capital Reiterates Opposition To Merger, Says Co Worth $25-$30

In an amended 13D filing on Bronco Drilling Co. Inc. (Nasdaq: BRNC), Wexford Capital, a 12.85% shareholder, disclosed a letter to the Board of Directors, reiterating their opposition to the merger with Allis-Chalmers Energy Inc. (NYSE: ALY) - saying it significantly undervalues the company.

Wexford Capital noted that it has extensive familiarity with Bronco Drilling, founding the company in 2001 and taking it public in 2005. They said, "As a substantial, knowledgeable Bronco shareholder, we have analyzed the proposed Merger and believe that it is not in the best interests of Bronco or its shareholders." The firm plans to vote against the deal.

Specificaly, Wexford said Bronco should be worth $25-$30 per share, well above the $17 per share offered in the Allis-Chalmers deal. Wexford noted that the land rig industry is much stronger since the transaction was announced. Wexford also said it expects 2009 EBITDA to approach $150M, well above the consensus estimate of $110M. Wexford also cited a comparable transaction between Schlumberger (NYSE: SLB) and Saxon Energy Services which implied a value of 7x EBITDA, versus a 3.5x-4.7x multiple for the Bronco Drilling/Allis-Chalmers deal.

Wexford Capital said they do not oppose a merger transaction involving Bronco, but they are opposed to the Allis-Chalmers deal as it significantly undervalues Bronco.

Link to Wexford letter to Bronco and the presentation

Wexford Capital LCC is an SEC registered investment advisor with over $7 billion of assets under management. Wexford manages four hedge funds with $4.5 billion in capital and has $ billion in private equity investments.

Cohen's SAC Boosts Stake in Invitrogen (IVGN) to 6.9%

In an amended 13D filing after the close on Invitrogen Corp. (Nasdaq: IVGN), Steven Cohen's SAC Capital disclosed a 6.9% (6,171,830 shares) stake in the company. This is up from the 5.2% stake Cohen showed in the original 13D filing in July.

In the original filing, SAC said, "Based on the information that is publicly available, the Reporting Persons are supportive of the proposed merger with Applera (NYSE: ABI)."

In June, Invitrogen agreed to acquire Applera's Applied Biosystems Group (NYSE: ABI) in a cash and stock transaction valued at $6.7 billion.

Invitrogen Corporation engages in the development, manufacture, and marketing of research tools in reagent, kit, and applications forms for the life sciences research, drug discovery, and diagnostics customers, as well as biological products manufacturers.

SAC Capital is a multi-strategy, private asset management firm founded by Steven A. Cohen in 1992 with 9 employees and $25 million in assets under management. As of September 2007, the firm has grown to over 800 employees with approximately $14 billion in assets.

Harbinger Capital Builds 6.6% Stake in Sunoco (SUN)

In a 13G filing after the close Friday on Sunoco, Inc. (NYSE: SUN), Philip Falcone's Harbinger Capital disclosed a 6.6% stake (7,732,600 shares) in the company. The hedge fund did not show a stake in Sunoco at the quarter ended 03/31/08.

A 13G indicates a 'passive investment', but Harbinger is a known activist investor. Most recently, Harbinger called on Cleveland-Cliffs (NYSE: CLF) to cancel their merger with Alpha Natural Resources Inc. (NYSE: ANR), saying it was not in the best interest of shareholders.

Sunoco, Inc., through its subsidiaries, manufactures and markets various petroleum products, including fuels, lubricants, and petrochemicals in the United States.

Harbinger Capital Partners, a subsidiary of Harbert Management, is a $9 billion hedge fund run by Philip Falcone.

Blum Capital Boosts Stake in Collective Brands (PSS) to 5.6%

In a 13D filing after the close on Collective Brands, Inc. (NYSE: PSS), Blum Capital disclosed a 5.6% stake (3,603,967 shares) in the company. The firm held 3197314 PSS shares at the quarter ended 3/31/08. A 13D indicates a possible 'activist' investment.

In a pretty standard disclosure, Blum Capital did not make any direct requests on Collective Brands, but said they will monitor their investment and may enter discussions with management, the Board of Directors or others.

Collective Brands, Inc., through its subsidiaries, engages in the wholesale and retail of footwear and related accessories worldwide.

Blum Capital Partners is a $2.8 billion investment firm based in San Francisco. The firm makes strategic block and control investments in public and private transactions. The firm's investment strategy combines the private equity process applied to the public markets along with an ability to play a constructive and active role in unlocking value from portfolio companies through the implementation of financial, operational and governance initiatives.

ValueAct Capital Boosts Stake in Alliance Data Systems (ADS) to 5.9%

In a 13D filing before the close on Alliance Data Systems Corporation (NYSE: ADS), ValueAct Capital disclosed a 5.9% (4,706,620 shares). This is up from the 2,009,900 shares held at the quarter ended 3/31/08.

In a pretty standard disclosure, ValueAct did not make any direct requests on Alliance Data Systems, but said they will monitor their investment and may enter discussions with management, the Board of Directors or others.

Alliance Data Systems Corporation, together with its subsidiaries, provides data-driven and transaction-based marketing and customer loyalty solutions.

ValueAct Capital, LLC is a $6 billion San Francisco based hedge fund focused on value investing.

Loeb's Third Point Said There Was a $20/Share Offer for Maguire Properties (MPG)

In an amended 13D filing on Maguire Properties Inc. (NYSE: MPG), Daniel Loeb's Third Point LCC, an 8.8% holder, said they are in receipt of a letter indicating that a viable third party recently approached the Company with a proposal to acquire all of the outstanding shares of the Company for approximately $20 per share in cash. Third Point said although the proposal has been withdrawn, the proposal can still be converted into a fully-financed, unconditional offer if the Company takes certain steps.

From the Filing:

"The Reporting Persons are in receipt of a letter indicating that a viable third party (the "Acquirer") recently approached the Company with a proposal to acquire all of the outstanding shares of the Company for approximately $20 per share in cash (or, at the shareholder's option, stock in the resulting entity) (the "Proposal"). According to the Reporting Persons' information, although it has been withdrawn, the Proposal can still be converted into a fully-financed, unconditional offer if the Company takes steps which the Reporting Persons believe would have no negative financial or commercial implications to the Company. The Reporting Persons believe it is in the shareholders' best interests for the Company to assist the Acquirer, and any other viable bidder who may surface, in preparing for a premium offer for the Company. While a board of directors certainly has the right to determine whether it wants to sell the company it oversees, shareholders have the right to choose a board of directors whose interests are aligned with their own. The Reporting Persons will not support a board that does not exercise its fiduciary obligation to maximize shareholder value and will take whatever steps necessary to protect and maximize their investment in the Company."