Mylan Labs Says Icahn Eyes Stake

The drugmaker says the famous investor has been given regulatory OK to buy a stake.
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Mylan Laboratories

(MYL) - Get Report

said Thursday that billionaire investor Carl Icahn has been given the OK by the Federal Trade Commission to purchase some of the company's stock.

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 between $100 million and $500 million worth of Mylan's stock.

Based on 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.

In premarket trading, Mylan's shares jumped $1.12, or 7.2%, to $16.70.

Mylan said it hadn't talked to Icahn, adding that it doesn't know how much he will buy. The company declined further comment.

Mylan is seeking to acquire

King Pharmaceuticals

(KG)

in a $4 billion stock swap deal announced in late July.

Icahn recently sold a part of his large stake in

ImClone Systems

(IMCL)

.