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Carl Icahn Cuts WebMD Below 5%, No Longer an Activist Stake

Carl Icahn, WebMD: In an amended 13D just filed with the SEC, Carl Icahn announced that he has agreed to sell back 5.5 million shares of WebMD Health Corp. (NASDAQ:WBMD) at a price of $32.08 each. Icahn held 6.7 million shares of WebMD at the end of the last 13F filing period, and the cut drops his stake far below the 5% threshold needed to carry out any sort of activist agenda.

Hedge Fund Strategies

Earlier in September WebMD conducted a tender offer in which it repurchased 5.0 million shares of its common stock, offering a price of $34 apiece, with the value of the deal amounting to $170 million. In the second quarter, WebMD posted EPS of $0.27, beating the average estimates by nearly 70%. Another recent highlight in the company’s life is the appointment of the interim CEO David J. Schlanger as the full CEO, and the appointment of Steven L. Zatz, M.D. as its President.

Below you can find the stock purchase agreement signed between Icahn and WebMD:

Ichan, WebMD Stock Purchase Agreement

Disclosure: none

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