Icahn Discloses Stakes in Rite Aid, HP
Washington, Active financier Carl Icahn today revealed that he now holds stakes in Rite Aid, Siebel Systems and Hewlett-Packard. The billionaire investor, who made headlines this week after he and two allies successfully replaced three Blockbuster board members, also reported that he no longer holds stakes in insurance broker Aon Corp and paper-product company Temple-Inland Inc. Icahn disclosed his stakeholdings today as required by the Securities and Exchange Commission.
Fitch Lowers Blockbuster Rating
New York City, Fitch Ratings reduced Blockbuster’s debt ratings, which already had been at junk status. The arrival of Carl Icahn to the board of directors, and his previous complaints about the direction of the company, precipitated the rating change. “Fitch believes that the uncertainties related to Blockbuster’s strategic direction and fiscal policies brought on by the expected appointment of Carl Icahn and his two nominees to the board … negatively affects bondholders,” according to the New York City-based ratings service.
Children’s Retailer Carter’s to Buy OshKosh
Atlanta, Carter’s Inc. has announced that it will acquire its rival OshKosh B’Gosh for $312 million, merging two brands into one company that will generate more than $1.3 billion in annual sales.
Carter’s, which operates 181 retail stores and whose brand is sold in 3,000 department stores, will pay $26 in cash for each share of OshKosh stock; the deal includes redemption of employee stock options.
Last February, Oshkosh, Wis.-based OshKosh retained investment bank Goldman Sachs to help pursue what the company called strategic alternatives, launching speculation about the future of the brand. The retailer ran into financial trouble this year when a move into adult clothing flopped.