Icahn Lifts Nuance Stake to 16%

Activist investor Carl Icahn has bought more shares of speech-recognition technology maker Nuance Communications Inc. (NUAN), lifting his stake to 16%.

Affiliates of Mr. Icahn initially disclosed a 9.3% stake in Nuance in April, without announcing any intentions for the company. Nuance has sought advice from Goldman Sachs Group Inc. (GS), The Wall Street Journal reported in April.

Nuance makes software that converts speech into text and is known best for its Dragon line of dictation products. The company sells its products to corporate customers, individuals and healthcare providers.

Costs, tied in part to acquisitions, have weighed on the company's bottom line in recent quarters, masking strong revenue growth. The company earlier this week reported it swung to a loss for its fiscal third quarter.

Activist shareholders have become major agitators at American companies in recent years. Mr. Icahn is known for amassing big stakes and pushing for change at underperforming companies.

He is Nuance's biggest shareholder.

Shares closed Thursday at $19.33 and were unchanged after hours. Through the close, the stock was down 13% since the start of the year.

Write to Kristin Jones at [e-mail]

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