Carl Icahn Discloses Recent Derivative Trades on Nuance Communications Inc. (NASDAQ:NUAN) which shows increased exposure.
Carl Icahn boosted his stake in Nuance Communications Inc. (NASDAQ:NUAN) after the company reported a weak second quarter earnings result on Tuesday, April 30. He created the most valuable position in Nuance. Icahn Capital LP had 76.9 million invested in the company at the end of the quarter.
Valuewalk reported on May 1st that sources with direct knowledge of the matter have told ValueWalk that Carl Icahn plans to further boost his stake in the company, now we have seen that happened. The activist has plans to force a takeover of the firm or buy the company outright. A spokesperson for Icahn did not respond to requests for comment.
Carl Icahn is known for his ability to build shareholder value, so this fact has reinforced takeover rumors. There were always rumors about Nuance Communications Inc. (NASDAQ:NUAN) taken over by Microsoft Corporation (NASDAQ:MSFT), Google Inc (NASDAQ:GOOG) or Apple Inc. (NASDAQ:AAPL). Apple has Siri, which is an application that uses language commands. The fact that Apple Inc. (NASDAQ:AAPL) did not already buy Nuance, although it had the necessary cash to do this, can mean the company is not really interested in such a purchase. Microsoft has a long history of work on speech recognition. This function was available for installation on Windows XP and Office 2002. As of now, it does not seem as though Microsoft is concentrating a lot on speech recognition technologies, so it’s doubtful it would seek purchases in this domain. Google’s voice search is performing well. The company seems in no need of external technology, as things are going the right way organically.
Form 4 Filed by Carl Icahn
In the footnotes, Icahn disclosed the following:
High River directly beneficially owns 3,218,174 American-style call options (the “Call Options”), Icahn Partners directly beneficially owns 4,854,164 Call Options, Icahn Master directly beneficially owns 5,132,987 Call Options, Icahn Master II directly beneficially owns 2,003,933 Call Options, and Icahn Master III directly beneficially owns 881,611 Call Options.
High River directly wrote 3,218,174 European-style put options (the “Put Options”), Icahn Partners directly wrote 4,854,164 Put Options, Icahn Master directly wrote 5,132,987 Put Options, Icahn Master II directly wrote 2,003,933 Put Options, and Icahn Master III directly wrote 881,611 Put Options. In each case, the exercise, termination or transfer of the Call Options will reduce the number of Put Options on a one-for-one basis.
The Call Options reference an aggregate of 16,090,869 Shares, have an exercise price of $12.30, expire on February 20, 2015, and provide for physical settlement. The Put Options reference an aggregate of 16,090,869 Shares, have an exercise price of $12.30, expire on February 20, 2015, and provide that they settle in cash.