Monday, May 17, 2010

BUSINESS NEWS: Hain Celestial shares rise after Icahn buys stock

Hain Celestial shares rise after Icahn buys stock

Hain has cut profit targets twice in 2010


Shares in US-based natural and organic food firm Hain Celestial rose more than 7% on Friday after the disclosure that activist investor Carl Icahn has bought an almost 12% stake in the business.

Icahn and funds controlled by him have bought 4.9m shares, or an 11.9% stake, in Hain Celestial.

In a short statement issued to accompany the disclosure, Icahn said he believed Hain's shares were "undervalued" and, after speaking to president and CEO Irwin Simon, "looked forward" to working with the company's management.

Last week, Hain cut its full-year earnings forecast despite swinging to a third-quarter profit. The company also lowered its annual profit targets in February.

SOURCE: just-food.com

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