Mylan Explains Trading Surge

The drugmaker says Thursday's huge volume resulted from the disclosure of Carl Icahn issue.
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Write it off to financier Carl Ichan.

That's what

Mylan Laboratories

(MYL) - Get Report

sort of did Friday in addressing a surge in trading volume Thursday.

"We believe yesterday's trading activity was largely driven by the announcement of Carl Icahn's clearance from the Federal Trade Commission to purchase between $100 million and $500 million worth of Mylan stock," the company said.

About 19.2 million shares changed hands yesterday, about six times the stock's normal daily volume of almost 3.3 million shares. The stock jumped more than 10% Thursday, but was off 20 cents, or 1.2% to $17 Friday.

On Thursday, Pittsburgh-based Mylan, which makes generic and brand-name drugs, said

the FTC granted early termination of the Hart-Scott-Rodino waiting period relating to an Icahn application to buy the company's stock. On the basis of Wednesday's closing price of $15.58, Icahn would be able to purchase 2.4% to 11.9% of Mylan's shares without making a further filing with regulators.

Mylan also said it is committed to its proposed $4 billion stock-swap merger with

King Pharmaceuticals

(KG)

, which has drawn a lukewarm reaction from investors and shareholders since its announcement in late July.