Carl Icahn Takes Stake in Bristol-Myers Squibb -- Sources

By David Benoit 

Carl Icahn has taken a stake in Bristol-Myers Squibb Co., making him the second big activist to pressure the company following disappointment in its cancer-treatment efforts.

Mr. Icahn owns a large stake and believes the New York drug giant has a good pipeline that would help make it an attractive takeover target, people familiar with the matter said. It isn't clear how big the stake is.

On Tuesday, Bristol-Myers announced it would add three directors to its board and buy back $2 billion in stock in a pact with another activist, Jana Partners LLC.

Jana took a stake last year and began pushing for board changes after Bristol-Myers announced in January that a lung-cancer treatment wouldn't get approval as fast as hoped, according to a person familiar with the matter. That warning increased investor fears Bristol-Myers would lose out to rivals in a crucial treatment sphere and contributed to a roughly 30% decline in the stock since July. The shares had fallen by nearly 2% Tuesday afternoon to $53.55 following news of the settlement with Jana. The drug company's market value now stands at about $90 billion.

Mr. Icahn has a history of successfully pushing for deals among pharmaceutical companies, and his presence on Bristol-Myers' shareholder register will likely add to recent speculation that a bidder could swoop in following the stock decline. Such a possibility has helped boost Bristol-Myers shares somewhat since January.

Write to David Benoit at [e-mail]

(END) Dow Jones Newswires

February 21, 2017 16:04 ET (21:04 GMT)

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