Activist Investor Carl Icahn Takes Stake in Allergan

Allergan shares are up slightly following news that activist investor Carl Icahn recently acquired a 'large position' in the pharmaceutical company. In a statement, Icahn said he is very supportive of CEO Brent Saunders, adding that he has every confidence in his ability to enhance value for all shareholders. No further details about Icahn's stake were disclosed. The Botox maker has a healthy balance sheet with approximately $1.2 billion in cash. Allergan is set to sell its generics unit to Teva Pharmaceuticals in a $40 billion deal that is expected to close by the end of June. Nearly $34 billion will make up the cash component of deal. So far this year, shares of Allergan have tumbled more than 23 percent. Allergan is a core holding of Jim Cramer's charitable trust Action Alerts PLUS.