Carl Icahn purchases stake in Bristol-Myers Squibb: report

According to people familiar with the matter, activist investor Carl Icahn has acquired a stake in Bristol-Myers Squibb, The Wall Street Journal reported Tuesday. While the size of the stake in the drugmaker was not divulged, shares in the company climbed as much as 5 percent on the news.

According to sources, Icahn believes that Bristol-Myers Squibb has a quality pipeline that would make the drugmaker a good takeover target. Earlier this month, people familiar with the matter disclosed that several companies viewed Bristol-Myers Squibb as a takeover target.

The news comes after Bristol-Myers Squibb announced Tuesday that it was adding three directors to its board as part of discussions with investor JANA Partners, which became a shareholder in the fourth quarter of last year, fuelling speculation that the company could be targeted for a merger.