Carl Icahn Set to Make Atleast $200 Million From Latest Stock Pick

Blain Reinkensmeyer

Posted on Tue 16th Oct, 2007 09:00:11 AM

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Carl Icahn, the billionaire investor who always seems to be getting his nose into something has possibly hit a home run with his newest venture with BEA Systems worth atleast an estimated $200 million.

Here is the situation, Carl Icahn has accumulated 13.22% of BEA Systems (BEAS) which was publicly announced by himself and can be found in SEC filings. A week later after revealing his latest stake, Oracle (ORCL) has offered to buy out BEA.

Last Thursday BEAS stock closed at $13.62, and Friday after the buyout offer the stock gapped above $18 and finished the day at $18.82, up over 38%.

So how did Mr. Icahn get such good timing on his stake? He publicly stated a goal of getting the software company bought out, and apparently that was enough to entice Oracle to jump in.

With the stock taking such a big jump in price, it will be extremely difficult to convince shareholders this isn’t in the best interest of BEA management. As a result, there is a high probability the purchase should go through.

You can read all the details at MarketWatch, but basically Carl Icahn owns some 51 million shares of BEAS stock (13.22% x 392 million outstanding shares) which he accumulated around $13 and lower.

Good game Carl Icahn, good game.