Icahn Ups His Stake in Speech-Recognition Company

by Christopher Freeburn | August 30, 2013 10:18 am

Icahn 106352500 200x300 Icahn Ups His Stake in Speech Recognition Company[1]Shares of Nuance Communications (NUAN[2]) climbed more than 3% in Friday morning trading after regulatory filings revealed that an activist investor has increased his holdings of the software maker’s stock[3].

According to documents submitted to the Securities and Exchange Commission (SEC), Carl Icahn’s investment funds now own 16.9% of Nuance’s shares. Prior filings had indicated that Icahn controlled a 16.4% stake in the company, Bloomberg noted.

The regulatory filings indicate that Icahn might attempt to place a representative on Nuance’s board of directors. Icahn, who normally tries to force undervalued companies to shed assets or seek a buyer, could be looking to force Nuance to sell itself to a range of possible suitors, including IBM (IBM[4]), Microsoft (MSFT[5]), Google (GOOG[6]) or Apple (AAPL[7]), one Wall Street analyst speculated.

Nuance makes voice recognition software. The company’s shares surged in April when Icahn first revealed that he had taken a stake in the firm[8].

On Thursday, Nuance adopted a new stockholders’ rights plan aimed at preventing a shareholder from gaining a controlling stake in the company through open market transactions.

Icahn recently took a stake in Apple thought to be worth about $1.5 billion and will meet with CEO Tim Cook next month to discuss the company’s stock buyback plans[9].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/11/Icahn_106352500.gif
  2. NUAN: http://studio-5.financialcontent.com/investplace/quote?Symbol=NUAN
  3. increased his holdings of the software maker’s stock: http://www.bloomberg.com/news/2013-08-29/carl-icahn-increases-nuance-stake-may-seek-board-seat.html
  4. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  5. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  6. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  7. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  8. when Icahn first revealed that he had taken a stake in the firm: http://investorplace.com/2013/04/carl-icahn-takes-stake-in-nuance-stock-soars/
  9. next month to discuss the company’s stock buyback plans: http://investorplace.com/2013/08/friday-apple-rumors-cook-and-icahn-to-talk-buybacks/

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