All cages rattled

27 November 2013 By Rob Cox Follow @rob1cox

Uppity investors like Carl Icahn say their rattling of corporate cages benefits all shareholders. That’s one reason they can exert pressure on large enterprises with small investments. But the argument is weakened when they sell their stock to their targets in exclusive deals.

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On Nov. 26 Take-Two Interactive Software shares plunged 5 percent after investor Carl Icahn sold all of his shares back to the videogame company. Three directors nominated by the billionaire resigned as part of the deal, under which Take-Two paid $203.5 million in cash or cash equivalents for the 12.02 million shares Icahn owned, or about a 13 percent stake.

Separately, ADT on Nov. 26 said it acquired most of Corvex Management’s share in the home-security company. ADT purchase 10.24 million shares held by the activist hedge fund run by a former portfolio manager for Icahn, Keith Meister, who also stepped down as an ADT director

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