Carl Icahn Exercises Options and Reiterates Stake in Hologic, Inc. (HOLX)

Activist Carl Icahn has reiterated his position in Hologic, Inc. (NASDAQ:HOLX) following the exercise of call options held earlier. According to SEC filings, Icahn acquired 30.6 million shares under the options, and currently owns in aggregate 34.2 million shares. The securities under the option have been purchased at a price of $14.5 per share, the aggregate amount spent raising to $444.1 million.

According to a filing, Mr. Icahn has spent a total of $729.2 million on acquiring his stake in Hologic, Inc. (NASDAQ:HOLX). Currently the billionaire holds 12.51% of the company’s common stock. The “hedgie” has already disclosed earlier that he intends to negotiate with the company’s management regarding the possibility to increase the value of the company for its shareholders.

As a first step, Icahn entered into an agreement with the company’s board, following which he got to nominate two representatives on Hologic, Inc. (NASDAQ:HOLX)’s board, Mr. Jonathan Christodoro and Mr. Samuel Merksamer.

Icahn initiated a position in Hologic, Inc. (NASDAQ:HOLX) earlier in November. Amid the announcement made by Icahn to acquire a stake in Hologic, the company decided to adopt an one-year stockholder rights plan, or also known as the Poison Pill. According to the plan, stockholders will be able to receive one right for one share of the company’s common stock, and will be exercisable only if a person or a group buys more than 10% of the Hologic, Inc. (NASDAQ:HOLX)’s common stock.  The plan was adopted in order to prevent the possibility of a hostile takeover.

John A. Levin’s Levin Capital Strategies, and Barry Rosenstein’s Jana Partners are two other shareholders of Hologic, Inc. (NASDAQ:HOLX), which in the latest round of 13F filings revealed 4.6 million shares, and 3.6 million shares respectively.

A couple of days ago, Mr. Icahn also revealed boosting his stake in Nuance Communications Inc. (NASDAQ:NUAN). The billionaire purchased around 1.4 million shares, raising the holding to a total of 60.3 million, equal to 19.2% of the company’s common stock.

Disclosure: none

Recommended Reading:

Hedge Fund News: David Tepper, George Soros & Man Group

GAMCO Goes Activist on Ascent Capital Group Inc (ASCMA); Proposes a Vote Regarding the Company’s Poison Pill

Anadarko Petroleum Corporation (APC), Schlumberger Limited. (SLB) Among 5 Energy Stocks That Hedge Funds Love