Icahn Dumps Blockbuster Stock30 Mar, 2010 By: Erik Gruenwedel
Activist investor Carl Icahn appears to be washing his hands of Blockbuster after selling off more than 15.5 million shares of the fiscally challenged movie rental giant.
Icahn, who earlier this year vacated his seat on Dallas-based Blockbuster’s board, sold the shares for an average price of less than 24 cents per share from March 26 to March 30 for a gain of about $3.7 million — a fraction of what he paid for them.
The investor still holds about 4.3 million millions shares of Blockbuster through various holding companies, according to a regulatory filing.
Blockbuster this week announced it would ask stockholders in May to approve a reverse stock split in an effort to bring the share price above $1, thereby enabling continued trading on the New York Stock Exchange.
With Blockbuster shares trading at 25 cents, Icahn’s 20-million share stake would have been reduced to 5 million shares following a reverse split.