Nuance surged 5.7 percent on April 2 after Icahn’s 9.3 percent stake was revealed.
Nuance surged 5.7 percent on April 2 after Icahn’s 9.3 percent stake was revealed, resurrecting a stock that plunged 19 percent on Feb. 8.
Icahn may pressure Nuance to sell its document-imaging division, according to Deutsche Bank AG and Mizuho Financial Group Inc. That would help Nuance reduce its $2.3 billion debt and improve sales growth at the company, Craig-Hallum Capital Group LLC said. Its voice-recognition technology, used on millions of devices, could make Nuance a takeover target for Microsoft Corp. (MSFT), Avondale Partners LLC said, while Deutsche Bank sees International Business Machines Corp. as a suitor.
“Nuance will offer Mr. Icahn and his firm the same respect and accord we offer our other investors,” Mack said in an e- mail. “We always seek to maintain an open dialogue with shareholders, yet keep discussions with individual investors private.”
Icahn didn’t respond to a request for comment. John Reilly of Armonk, New York-based IBM and Redmond, Washington-based Microsoft’s Tony Imperati said their companies don’t comment on speculation.