Activist investor Carl Icahn exercised call options on Wednesday to take ownership of the shares underlying his 9.4 percent stake in Matthews-based Family Dollar.
Icahn, who has called for Family Dollar to be sold and threatened to move to fire the board of directors, previously held most of his stake through options to buy stock rather than actual shares. That changed Wednesday, according to securities filings, when he exercised the options and purchased the underlying shares.
Family Dollars stock rose 1.3 percent Wednesday, to close at $65.79 a share.
Icahn spent a total of $622 million to acquire all of the almost 10.7 million shares he now owns, according to securities filings. At Wednesdays closing price, the shares are worth about $703 million, meaning Icahn has already accumulated paper gains of $81 million.
Family Dollars shares have fallen from their high of almost $70 since Icahn announced his stake in the company. If the companys shares returned to that price, Icahns stake would be worth $748 million, giving him a $126 million profit on paper.
Icahn has said the chain needs to be sold because it is under-performing its competitors.
Portillo: 704-358-5041; Twitter: @ESPortillo
The Charlotte Observer welcomes your comments on news of the day. The more voices engaged in conversation, the better for us all, but do keep it civil. Please refrain from profanity, obscenity, spam, name-calling or attacking others for their views.
Have a news tip? You can send it to a local news editor; email firstname.lastname@example.org to send us your tip - or - consider joining the Public Insight Network and become a source for The Charlotte Observer.Read moreRead less