Bausch Health (BHC, Financial) disclosed that billionaire investor Carl Icahn (Trades, Portfolio) has a total economic exposure of approximately 34% to the company's common stock. While Icahn directly owns 9.4% of Bausch Health, he also holds an additional 24.6% exposure through cash-settled stock swap agreements. These financial instruments allow investors to benefit from stock price movements without owning the actual shares.
Earlier, Bausch Health implemented a shareholder rights plan, known as a "poison pill," to protect against hostile takeovers and prevent any investor from acquiring more than 20% of the company. In a supplemental filing, Bausch Health noted that Icahn declined to provide copies of the swap agreements to the company's legal team. However, he indicated that these agreements were established between May 2021 and September 2023. Icahn also stated that these agreements do not grant him voting control over the additional shares.
