Icahn Weighs Greenbrier Strategic Options With 9.99% Stake

Tuesday, 13 Nov 2012 11:29 AM

 

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Activist investor Carl Icahn said he is planning talks with Greenbrier Cos. that may include strategic opportunities after buying a 9.99 percent stake in the “undervalued” railcar maker.

Greenbrier jumped 16 percent to $16.15 at 10:25 a.m. in New York after rising as much as 17 percent, the biggest intraday advance since Nov. 3, 2011. Messages left for comment with Icahn and at Lake Oswego, Oregon-based Greenbrier weren’t immediately returned.

Icahn began buying the stock in October and paid about $40.3 million, including commissions, for 2.71 million shares, according to a regulatory filing Tuesday. His Icahn Associates reported holding a 55.6 percent stake in St. Charles, Missouri-based American Railcar Industries Inc. as of July 1.

“Further discussions possibly relating to strategic opportunities” are planned with Greenbrier management, according to the filing, which said “the shares were undervalued.”

Greenbrier fell 43 percent this year through yesterday, trailing gains of 11 percent for American Railcar and 7.1 percent for the Russell 2000 Index. American Railcar rose 9.8 percent to $29.07 after an intraday gain of as much 11 percent, the most since July 27.

Icahn, 76, has pressed for buyouts and management changes to bolster shareholder value at some companies in which he has previously invested. Netflix Inc., the largest subscription video service, adopted a so-called poison pill this month to guard against a hostile takeover after Icahn bought a stake of similar size.

Greenbrier had a market value of $378.6 million yesterday, according to data compiled by Bloomberg.

© Copyright 2014 Bloomberg News. All rights reserved.

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