Bausch Health Confirms Icahn's 34% Economic Interest

Bausch Health has disclosed that activist investor Carl Icahn now holds an economic interest in about 34% of the company’s outstanding shares, primarily through cash-settled equity swaps covering over 90 million shares, which do not confer voting rights or dispositive power. The company’s Board, supported by independent counsel, reviewed these arrangements and found Icahn’s position to represent substantial economic exposure without direct ownership or control. In response, Bausch Health adopted a shareholder rights plan to prevent any single entity from acquiring 20% or more of its shares without meeting specific conditions, aiming to protect shareholders from potential 'creeping' takeovers and ensure value-enhancing alternatives. The proxy statement supplement also revealed that Board Chairman John Paulson had purchased $50 million in company bonds but plans to divest to avoid conflicts of interest. The announcement of Icahn's expanded stake led to a notable surge in Bausch Health's stock price. Despite positive earnings and strong revenue growth, the company faces concerns over high leverage and persistent net losses.