Special Situation Investing

Tuesday, August 15, 2006

Cendant (CD) and Take Two Interactive (TTWO) - Carl Icahn reveals ownership

In a recent report (this version of the analysis is more readable) it has come to light that Carl Icahn has ownership in Cendant and Take Two Interactive. The filing was current as of June 31.

If he held his position, he would now have ownership of Cendant, Wyndham and Realogy as a result of the spinoff. He is listed as having 6.1 million shares of Cendant out of some 1 billion shares outstanding. As such he has little direct control over management. It seems likely that he picked Cendant more because current management shares his style of extracting value from troubled businesses.

His stake in TTWO is again likely meaningless as far as influence over management. He owns 800,000 shares out of ~72.5 million shares giving little influence other than psychological. I remember reading, but cannot find the post, something about him financing a video game startup so perhaps this has given him some insight into the software company.

More on Take Two Interactive here and Cendant here and here.


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