Forest Labs Makes Icahn an Activist Investor Winner

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Feb. 18 (Bloomberg) -- Bloomberg News’ Cristina Alesci breaks down Carl Icahn’s activist investing triumph at Forest Labs and looks at the activist investor activity in Vodafone on Bloomberg Television’s “Market Makers.”

He has threatened a proxy fight for the last three years.

To appease them, the company give him some seats on the board and he got his guy as ceo.

As a result, you get the outcome that carl icahn wanted all along.

Forest labs to be bought out.

He is different from the other activist investors.

How many years has he been invested here?

At least three.

Let's not forget the fact that he came into the stock saying it does not have scale, it does not have a sales force that is as strong as the other players.

At the end of the day, forest is not a slamdunk hit for activists.

It has a problem developing new drugs ever since its blockbuster lexapro antidepressant went off the market, it tried to go in and buy a -- other companies to build a revenue gap and it is still not.

. carl icahn is getting a 25% premium on a company that is still not there yet.

He does not have investors to answer to every month, every quarter.

He is only answering to himself.

He can write it out.

Other guys to not have that luxury.

He has a larger stomach because he does not have to answer to anybody.

He can stay in stocks for the long-term, not care about what institutional investors that about him.

Frankly, not care about what anybody thinks about him.

It is not the fact that he does not have institutional shareholders, it is his attitude.

You don't like what i am doing, that is your problem.

I'm going to stick to this.

He is not the pump and dump scheme that people are concerned about.

It has to be also the case with john paulson.

It does not look like he can walk away from vodafone.

He bought 50 million more shares in the fourth quarter.

He has 35 million shares.

Hold on a second.

It is an all-star cast.

Einhorn, bass, asness.

It is almost like a herd mentality.

Why not everybody follow each other?

Is that the way it works on wall street?

This is an interesting trade.

It is unclear when these guys got in.

Last month, at&t comes out and says we are not going to make a bid for vodafone for the next six months.

The stocks dropped.

These guys had to play their cards carefully.

They're smart guys and are probably going to make money on this trade.

Because it is a takeout target.

At&t is not jumping in as it was, as it was rumored or speculated before hand.

Hold on.

As far as herd mentality goes,

This text has been automatically generated. It may not be 100% accurate.

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