Icahn Has a Busy Day: BEAS, WCI, More...

Billionaire financier, Carl Icahn had a busy day today. Icahn's bet on BEA Systems (Nasdaq: BEAS) (13%), which looked like it was going nowhere fast, paid off big after the company was acquired by Oracle (Nasdaq: ORCL) for $19.375 per share in cash. The price was lower than the $21 per share BEA said they would start the bidding at, but it was higher than Oracle's original $17 bid - which BEA rejected. Icahn said he supports the deal.

Another one of Icahn's stocks, WCI Communities (NYSE: WCI), where he is Chairman, was down over 20% earlier today on bankruptcy fears. The stock spiked back into the green after Icahn, on CNBC, said he would not jump to that conclusion. WCI's latest bank waiver on the company's loans expires today. If the company is unable to negotiate new terms with its banks it may be in serious trouble.

On CNBC, Icahn also made some upbeat comments about one of his other stocks, Motorola Inc. (NYSE: MOT). Icahn said he is a great bull on the stock. Icahn said Motorola needs to separate the cell phone business. He said at current prices you get the cell phone business for nothing.

Another Icahn bet, Biogen Idec (Nasdaq: BIIB), is trading in the green today. Biogen shares were killed in December after the company completed its review of strategic alternatives without a sale. The stock dropped from about $76 to $54 after the news. It is currently trading at around $60.

On Fast Money yesterday, Icahn said he still has hope the company will eventually be sold.

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Sandell Asset Management Backs Icahn on WCI

In a 13D filing on WCI Communities Inc. (NYSE: WCI), 9.8% holder Sandell Asset Management disclosed a letter to the company supporting Carl Icahn. The firm belives that a sale of the WCI is the best and possibly only route to value creation for shareholders.

In the letter, Sandell said, "We support Carl Icahn's efforts to create change at WCI by nominating and electing an alternative slate of directors at the WCI annual meeting, and see his recent tender offer as a positive step in value maximization at WCI. The onus is clearly on WCI's management, board of directors and financial advisors at this point to step up their efforts to achieve the best possible result of the strategic review process. If that process does not yield a higher value, we encourage the board to work with Mr. Icahn toward a negotiated deal rather than attempt to hide behind the recently adopted poison pill. In the absence of a higher bid, the shareholders may have little choice in the decision of selling to Mr. Icahn or leaving the company in current management's hands and risking further value destruction."

Yesterday, Icahn announced plans to initiate a $22 per share "any and all" tender offer for WCI shares.

WCI Recommends Holders Reject Icahn's Offer

WCI Communities' (NYSE: WCI) announced that its Board of Directors has unanimously concluded that the unsolicited tender offer by entities controlled by Carl Icahn to purchase any and all outstanding shares of WCI's common stock is highly conditional, opportunistic and inadequate from a financial point of view to the Company's shareholders. The Board unanimously recommends that shareholders not tender their shares pursuant to the tender offer.

Carl Icahn's offer for WCI Communities was $22 per share.

This may get a little uglier.

Past Icahn/WCI Reports

Icahn Plans $22/Share Tender Offer for WCI Communities (WCI)

This morning, Carl Icahn announced plans to initiate an "any and all" tender offer for the common stock of WCI Communities,Inc. (NYSE: WCI) at $22.00 per share. Ichan said closing of the tender offer will be subject to the redemption of the Company's recently adopted "poison pill"

Icahn stated that, "we believe that the board and CEO of WCI have not enabled the Company to maximize the potential of its unique set of assets which trade at a discount to their GAAP book value."

He also said, "While clearly now is not the right time to sell, in my opinion Mr.Starkey and the current board are not qualified to navigate WCI through the difficult industry conditions that lie ahead."

Icahn concluded that "this tender offer will be in the best interests of all shareholder"

Link to past reports related to Icahn's stake in WCI

Icahn Raises Stake in WCI Communities (WCI) to 14.6%, Wants to Unlock Inherent Value

In a 13D filing after the close Friday on WCI Communities, Inc. (NYSE: WCI), Carl Icahn disclosed a 14.57% stake (6.1 million shares) in the company. This is up from the 1.66 million shares Icahn disclosed in its latest quarterly filing.

In the filing, Icahn said he intend to contact the Company with a view to having a series of discussions regarding the business and prospects of the Company and seeking the Company's views on how to unlock the inherent value of the Shares

Shares of WCI Communities are 8% to $22.72 in early action Tuesday.

NOTE: Mega hedge-fund SAC Capital recently disclosed a 6.5% stake in WCI. Link

Icahn Seeks to Nominate 10 to WCI Board

On Friday, 14.6% holder Carl Icahn delivered a letter to WCI Communities Inc. (NYSE: WCI), notifing the company of his intent to appear at the 2007 annual meeting to nominate and seek to elect individuals as members of the board of directors.

Icahn filed to nominate 10 directors, including himself, to the WCI board.

In response to Ichan's letter, WCI said Ichan's plan was not in the best interest of all shareholders. Don E. Ackerman, Chairman of the Board of WCI, stated, "The Board believes that Mr. Icahn's plan to run a hand-picked slate of directors to further his personal objectives would be highly disruptive to our company and not in the best interests of all our shareholders. The Board is committed to maximizing value for our shareholders by following processes that will not favor any specific shareholder in the purchase or sale of the company's shares or assets."

Photo: Bloomberg

Icahn Seeks to Nominate 4 to Temple-Inland (TIN) Board

On Friday, 6.7% holder Carl Icahn delivered a letter to Temple-Inland (NYSE: TIN), notifing the company of his intent to appear at the 2007 annual meeting, in person or by proxy, to nominate and seek to elect individuals as members of the board of directors.

Icahn filed to nominate 4 directors to the WCI board: Jose Maria Alapont, Ambassador John R. Bolton, Keith A. Meister, James J. Unger.

In his original 13D filing, Icahn said the stock is undervalued due to the conglomerate structure of the company. Icahn said he plans to recommend a divestiture or spin-off of one or more of the Company's component businesses.

Marvin Schwartz Discloses 5.32% Stake in WCI Communities (WCI)

In a 13D filing on WCI Communities Inc. (NYSE: WCI) this morning, Marvin C. Schwartz, a Managing Director of Neuberger Berman LLC, disclosed a 5.32% stake (2.23 million shares) in the company. The stake in personal and not as an employee of Neuberger Berman.

Mr. Schwartz does not presently have any plans or proposals that relate to or would result in any of the actions required to be described in Item 4 of Schedule 13D.

The news follows recent disclosures showing stakes in WCI owned by Carl Icahn and Bill Gates.

SAC Capital Boosts Stake in WCI to 9.5%, May Engage in Discussions with Management

In a 13D filing on WCI Communities, Inc. (NYSE: WCI), SAC Capital disclosed a 9.5% stake (4 million shares). This is up from the 3.25 million shares stake the firm disclosed for the quarter ended Dec 31, 2006. SAC changed its filing status from 13G (passive) to 13D reflecting its more activist role in the investment.

In the filing, SAC said, "The Reporting Persons have reviewed public information regarding the potential proxy contest and unsolicited tender offer by Icahn Partners LP and others, and regarding the Issuer’s process of reviewing financial, strategic and operational alternatives (including a potential sale of the Issuer). The Reporting Persons intend to review their investment in the Issuer on a continuing basis and may engage in discussions with management, the Board of Directors, other shareholders of the Issuer and other relevant parties concerning these matters and potentially concerning other matters with respect to the Reporting Persons’ investment in the Common Stock, including, without limitation, the business, operations, governance, management, strategy and future plans of the Issuer."

WCI Communities is currently reviewing strategic options and Carl Ichan recently announced an unsolicited tender offer to acquire any and all of WCI's outstanding common stock for $22.00 per share.

Icahn's Hedge Fund Shows New Stakes In Genzyme (GENZ) and Childrens Place (PLCE), Among Others

Carl Icahn's Icahn Capital Management LP released its latest 13F for the quarter ended September 30, 2007. Below is a summary:

New Positions:
Acorda (Nasdaq: ACOR) 16,293 shares
Applera Corp-Applied Biosystems Group (NYSE: ABI) 649,026 shares
Compton Petroleum Corp. (NYSE: CMZ) 3,500,880 shares
Genzyme Corp. (Nasdaq: GENZ) 1,518,463 shares
Harrah's Entertainment Inc. (NYSE: HET) 1,842,800 shares
MGI Pharma Inc. (Nasdaq: OGN) 606,518 shares
Take-Two Interactive Software Inc. (Nasdaq: TTWO) 462,037 shares
The Childrens Place Retail Stores, Inc. (Nasdaq: PLCE) 1,128,001 shares

Raised Positions:
Anadarko Petroleum Corp. (NYSE: APC) from 4,520,294 shares to 13,758,160 shares
BEA Systems (Nasdaq: BEAS) from 7,944,293 to 13,578,160 shares
Biogen (Nasdaq: BIIG) from 2,740,000 shares to 8,825,816 shares
Lions Gate Entertainment Corp. (NYSE: LGF) from 4,119,918 shares to 4,289,508 shares
Macy's (NYSE: M) from 2,368,560 shares to 4,016,669 shares
Motorola (NYSE: MOT) from 55,290,640 shares to 60,466,400 shares
Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) from 2,270,024 shares to 2,508,001 shares

Lowered Positions:
Clear Channel Communications Inc. (NYSE: CCU) from 1,466,640 to 0
Global Payments Inc. (NYSE: GPN) from 1,008,779 to 0
MeadWestvaco Corporation (NYSE: MWV) from 3,781,120 shares to 2,243,101
Pride International Inc. (NYSE: PDE) from 4,527,245 shares to 0
Rowan Companies Inc. (NYSE: RDC) from 3,239,600 shares to 2,317,979
Talisman Energy Inc. (NYSE: TLM) from 4,156,663 shares to 0
Temple-Inland Inc. (NYSE: TIN) from 6,046,992 shares to 2,601,056

Maintained Positions:Adventrx Pharmaceuticals Inc. (AMEX: ANX), Blockbuster Inc. (NYSE: BBI), CSX Corp. (NYSE: CSX), Cyberonics Inc. (Nasdaq: CYBX), Enzon Pharmaceuticals Inc. (Nasdaq: ENZN), Lear Corp. (NYSE: LEA), Lincoln National Corp. (NYSE: LNC), Quest Resource Corp. (Nasdaq: QRCP), Time Warner Inc. (NYSE: TWX), Unum Group (NYSE: UNM), WCI Communities Inc. (NYSE: WCI), Williams Companies Inc. (NYSE: WMB).

Summary of Icahn Management's 13F

Carl Icahn's Icahn Management's released its latest 13F for the quarter ended June 30, 2007. Below is a summary:

New Positions:

Alcan, Inc. (NYSE: AL) 1,176,000 shares, Alcoa (NYSE: AA) 3,520,000 shares, BEA Systems Inc. (Nasdaq: BEAS) 7,944,293 shares, Biogen Idec Inc. (Nasdaq: BIIB) 2,740,000 shares, Clear Channel Communications Inc. (NYSE: CCU) 1,466,640 shares, Enzon Pharmaceuticals Inc. (Nasdaq: ENZN) 1,740,001 shares, Global Payments Inc. (NYSE: GPN) 1,008,779 shares, Kraft Foods Inc. (NYSE: KFT) 3,920,000 shares, Lincoln National Corp. (NYSE: LNC) 646,400 shares, Macy's, Inc. (NYSE: M) 2,368,560 shares, MeadWestvaco Corporation (NYSE: MWV) 3,781,120 shares, Rowan Companies Inc. (NYSE: RDC) 3,239,600 shares

Raised Positions:

Anadarko Petroleum Corp. (NYSE: APC) from 3,105,520 shares to 4,520,294 shares, CSX Corp. (NYSE: CSX) from 2,675,680 to 2,920,000 shares, Motorola Inc. (NYSE: MOT) from 9,360,000 shares to 55,290,640 shares, Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) from 173,304 shares to 2,270,024 shares, Temple-Inland Inc. (NYSE: TIN) from 5,761,552 shares to 6,046,992 shares, Unum Group (NYSE: UNM) from 2,457,440 shares to 4,020,960 shares

Lowered Positions:

Pride International Inc. (NYSE: PDE) from 4,588,000 shares to 4,527,245 shares

Maintained Positions:

Adventrx Pharmaceuticals Inc. (AMEX: ANX), Blockbuster Inc. (NYSE: BBI), Cyberonics Inc. (Nasdaq: CYBX), Lear Corp. (NYSE: LEA), Lions Gate Entertainment Corp. (NYSE: LGF), Quest Resource Corp. (Nasdaq: QRCP), Talisman Energy Inc. (NYSE: TLM), Telik Inc. (Nasdaq: TELK), Time Warner Inc. (NYSE: TWX), WCI Communities Inc. (NYSE: WCI), Williams Companies Inc. (NYSE: WMB)

Icahn Shifts Positions, Adds CYBX, HLT and WCI

Activist investors Carl Ichan made the following changes in a 13F filing from his Icahn Management LP unit:

New stakes: Cyberonics Inc. (Nasdaq: CYBX) 607K shares, Hilton (NYSE: HLT) 4.06 million shares, WCI Communities Inc. (NYSE: WCI) 1.66 million shares.

No longer holding: BJ's Wholesale Club Inc. (NYSE: BJ), BKF Capital (OTC: BKFG), Cimarex Energy Co. (NYSE: XEC), Pioneer Natural Resources (NYSE: PXD), Ryland Group Inc. (NYSE: RYL), Transocean Inc. (NYSE: RIG).

Raised stakes: Time Waner (NYSE: TWX) from 49.6M shares to 55 million shares, Take Two (Nasdaq: TTWO) from 800K to 2.9 million shares.

Activist Investors Look Good In Recent Days

A handful of nice wins in recent days for activist investors:

Applebee's International, Inc. (Nasdaq: APPB) said its Board of Directors has formed a committee of independent directors to explore strategic alternatives for enhancing shareholder value, including a possible recapitalization or sale of the company. APPB is an activist target of Richard Breeden.

Ceridian Corporation (NYSE: CEN) announced that its Board of Directors has decided to explore a broad range of strategic alternatives to enhance shareholder value. The Board has retained Greenhill & Co., LLC as its financial advisor and Wachtell, Lipton, Rosen & Katz as legal advisor to assist in this effort. CEN is an activist target of Bill Ackman's Pershing Square Capital.

WCI Communities, Inc. (NYSE: WCI) retained Goldman Sachs & Co. to assist the Board and senior management in a thorough review of the Company's business plans, capital structure, and growth prospects, with the objective of enhancing the company's value for all of its shareholders. WCI is an activist target of Carl Icahn.

The Home Depot (NYSE: HD) announced that the Company and its board of directors have decided to evaluate strategic alternatives for its HD Supply business, including a possible sale, spin or initial public offering of the business. HD is an activist target of Relational Investors LLC.