Dissident Investors Again Pressure ICN

Even as ICN Pharmaceuticals Inc. works to settle federal civil and criminal claims against it, the Costa Mesa drug maker is being besieged once again by dissident shareholders upset with Chairman Milan Panic and the slow pace of a plan to split the company into three independent units. A new group called the ICN Committee to Maximize Shareholder Value said it had submitted a slate of three directors for the 14-member board. Shareholders are scheduled to meet in May. The dissident group is led by Special Situations Partners Inc., a Cayman Islands-based investor with a 4% stake in ICN. “We have to put pressure on Milan Panic by putting some independent directors on the board,” Special Situations Managing Director Eric Knight said. “We believe shares are trading at a fraction of what they’re worth.” ICN stock has fallen significantly since it hit its a 52-week high of $41.75 on Oct. 20. The shares lost 97 cents to close at $23.65 on the NYSE. Specifically, Knight faulted ICN for failing to distribute to shareholders stock in two proposed units, Ribapharm Inc. and ICN International. The company accused the dissident committee of taking “another step to disrupt the ability of ICN to complete its restructuring, manage the company effectively and achieve a fair valuation for ICN stock.” ICN said in a prepared statement that it remains committed to restructuring, but will not “move precipitously for the benefit of short-term speculators.” ICN hopes to take both Ribapharm and ICN International public this year. It would then distribute the remaining Ribapharm stock to shareholders, subject to a favorable tax ruling from the Internal Revenue Service.