Forest Labs Shareholders Elect Co's Slate, Reject Icahn Nominees

  DOW JONES NEWSWIRES 
 

Forest Laboratories Inc. (FRX) shareholders rejected activist investor Carl C. Icahn's board nominees and elected Forest's entire slate, the pharmaceuticals company said pointing to preliminary results.

Icahn, who is well known for his efforts to push for change in boardrooms, wasn't immediately available for comment.

"We greatly appreciate the strong support from our shareholders and the confidence they have placed in us by electing all of our highly qualified nominees," said Kenneth E. Goodman, who was elected presiding independent director.

Also elected were Nesli Basgoz, Christopher J. Coughlin, Dan L. Goldwasser, Gerald M. Lieberman, Lawrence S. Olanoff, Lester B. Salans, Brenton L. Saunders, Howard Solomon and Peter J. Zimetbaum.

Icahn affiliate High River L.P., which owns about 6.5% of the company's outstanding stock, had nominated Alexander J. Denner, Richard Mulligan, Lucian A. Bebchuk, and Eric J. Ende. But only Mulligan, who currently serves on the boards of Biogen Idec Inc. (BIIB) and Enzon Pharmaceuticals Inc. (ENZN), was recommended by the proxy-advisory firm Glass Lewis & Co.

Forest Labs made headlines recently after it settled a federal probe over misconduct in marketing of its antidepressant Celexa and another drug last year and paid $313 million to resolve the matter. The U.S. government earlier this month dropped efforts to force the company's longtime chief executive, Howard Solomon, to step down over the illegal marketing.

Last month, Forest Labs reported its fiscal first-quarter earnings more than doubled on fewer charges and lower expenses as revenue rose 8%.

Shares were trading at $33.35, down 3.2%, amid a broad market downturn.

-By Melodie Warner, Dow Jones Newswires; 212-416-2283; [e-mail]