WCI DOW JONES NEWSWIRES
Steven A. Cohen's S.A.C. Capital Advisors LLC on Tuesday reported holding a 9.5% stake in WCI Communities Inc. (WCI) and said it has reviewed public information regarding the company's potential proxy contest and unsolicited tender offer by Carl Icahn's Icahn Partners LP.
According to a Schedule 13D filed with the Securities and Exchange Commission, S.A.C. Capital beneficially owns 4 million shares of WCI, a Bonita Springs, Fla.-based developer of leisure and retirement communities.
Last week, Icahn, who holds a 14.52% stake in WCI, announced that he intends to initiate a tender offer of $22 a share for all of the company's shares.
S.A.C. Capital also said it has reviewed WCI's process of reviewing financial, strategic and operational alternatives, including a potential sale of the company. The hedge fund said it intends to review its investment "on a continuing basis" and may engage in discussions with company's management, board, and other shareholders regarding these matters and potentially concerning other matters, including WCI's business, operations, governance, management, strategy and future plans.
S.A.C. Capital said it originally acquired shares because they believed they were "undervalued" and "represented an attractive investment opportunity." Shares of WCI closed Monday at $22.40 each.
As reported, another major WCI shareholder, Sandell Asset Management Corp., said last week that it supports Icahn's tender offer to acquire the company. Sandell Asset, which holds a 9.8% stake in WCI, said it sees Icahn's recent tender offer as a positive step in value maximization at the company. WCI said last week that it will review Icahn's offer, and in the meantime will move forward with its review of strategic options to maximize shareholder value.
-Brian Coyle, Dow Jones Newswires; 202-862-3545
March 20, 2007 06:41 ET (10:41 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
