Bausch Health Faces Carl Icahn's 34% Stake Amid Poison Pill Defense

Bausch Health has revealed that activist investor Carl Icahn now holds a total economic exposure of about 34% in the company, combining a direct 9.4% share ownership with an additional 24.6% exposure via cash-settled equity swap agreements. In response to Icahn’s growing interest, Bausch recently implemented a 'poison pill' shareholder rights plan to prevent any single investor from acquiring more than 20% of the company’s voting shares, aiming to defend against potential hostile takeovers. While the equity swap agreements provide Icahn with significant financial interest in Bausch, they do not give him voting or control rights over the referenced shares. Bausch’s board, with the help of independent counsel, reviewed Icahn’s position, but Icahn declined to provide full documentation of the swap agreements, though he confirmed the terms and accumulation period. The company maintains that the poison pill strategy is intended to allow Bausch time to explore alternatives that benefit all shareholders, rather than a select few. News of Icahn’s substantial exposure led to a jump in Bausch’s share price in premarket trading.