Carl Icahn Set to Make Atleast $200 Million From Latest Stock Pick
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.
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So your saying that whatever Carl Icahn buys, we should buy.
less GM
Icahn has done very well, and actually GM shares have appreciated quite nicely over the last month or so. I wouldn’t buy it now, but still a nice move.
wow.. hope I can make that kind of deal one day
Piggybacking can work. Icahn made me $60 from BEAS!