Carl Icahn and related entities on March 16 disclosed a 6.86% stake in Newell Brands Inc., the parent company of Rubbermaid that is currently embroiled in a proxy fight with activist investor Starboard Value LP.
Icahn's investment amounts to 33,293,013 shares, according to an SEC filing. Of the total, the firms purchased 30,279,791 for an aggregate price of approximately $829.7 million. The remaining 3,013,222 shares are beneficially owned by Icahn through forward contracts at a price of $23 per share, or an aggregate price of about $69.3 million plus a financing charge.
The billionaire told CNBC on March 1 that he had purchased a large stake in the consumer products company.
Icahn said in the filing that he has not yet determined whether he will support Newell or Starboard in the proxy battle. "Although there is clearly no easy short-term fix for [Newell], we believe there is an important role for our brand of activism," Icahn and his related entities said in the filing.
Newell's conflict with Starboard revolves around Starboard's attempt to oust the company's entire board of directors. The activist investor is looking to place three former executives of Jarden Corp., which Newell acquired in 2016, on the board, among others. Two Newell directors left the company in March.
The proxy campaign was launched in February following Newell's announcement of its decision to sell off some of its smaller brands.
