Hedge Funds

Icahn sues Perry over alleged stock manipulation

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One-time corporate raider and newly minted hedge fund manager Carl Icahn has sued event-driven hedge fund Perry Partners for $1 billion, claiming the firm engaged in stock manipulation in relation to Perry's push to sway the outcome of a takeover bid.

Perry, which owns a nearly 10% position in pharmaceutical company Mylan Labs, wants Mylan to succeed in its takeover bid of King Pharmaceuticals, which would give a boost to Perry's position in King. Perry owns seven million shares in King. But Icahn, who is also bidding for Mylan, is incensed over Perry's arrangement because despite Perry's ownership and