Actavis announced that it would pay the equivalent of $89.48 a share for the New York pharmaceutical company.
The acquisition also marks a massive payday for investor Carl Icahn, the second-largest shareholder of Forest Labs with an 11.32% stake in the company. "This is a huge win for ALL shareholders of Forest Labs and yet another validation of the activist investment philosophy in general," Icahn said in a statement.
Icahn fought two proxy battles and threatened a third one in order to alter Forest's leadership and strategy. He helped influence change at the top of the company last year when former Bausch & Lomb CEO Brenton Saunders replaced former Forest CEO Howard Solomon after he retired.
Actavis was rising 6.52% to $204.38 on Tuesday, while shares of Forest were spiking 28.91% to $92.03.Must Read: Where the Bargains Are