Bausch Health Stock Surges 13% as Icahn Acquires 34% Stake

Bausch Health, a leading Canadian pharmaceutical company, saw its pre-market stock price surge by approximately 13%. This significant increase was triggered by the revelation that billionaire activist investor Carl Icahn, often referred to as the "Wolf of Wall Street," had acquired nearly 34% of the company's shares. Icahn, known for his aggressive investment tactics, now holds 34.7 million ordinary shares, representing 9.4% of the total shares. Additionally, Icahn and his affiliates have entered into a cash-settled equity swap agreement involving 90.7 million shares, or 24.6% of the total shares. This agreement is set to expire on February 28, 2028, effectively giving Icahn economic control over approximately 34% of the company's outstanding shares.

The disclosure was made through a supplemental proxy statement filed ahead of the company's annual shareholder meeting on May 13. Bausch Health's implementation of a shareholder rights plan, commonly known as a "poison pill," was a strategic move to deter potential hostile takeovers or other acquisition attempts. This plan underscores the company's proactive approach to safeguarding its interests in the face of significant shareholder influence.

Icahn's substantial investment in Bausch Health signals his confidence in the company's future prospects. His involvement often leads to pushes for strategic changes or operational improvements, which could potentially enhance shareholder value. The implementation of the shareholder rights plan further highlights Bausch Health's commitment to maintaining its independence and strategic direction, despite the significant stake held by Icahn. This development is likely to attract attention from other investors and industry observers, as they monitor the potential impact of Icahn's influence on the company's future decisions and performance.