No. Thats part of the strategy. Icahn doesnt want nor really need the dividend. THe point is to deal maximum pain to ackman.
He wants the option sellers to hold the shares past exdividend. This way ackman gets the maximum pain.
When you are short and dividend is distributed, you need to pay the shareholders back the dividend. This is cash out of your pocket.
If shares are exercised before exdividend, then the shorter doesnt need to pay money to the shareholders. So, by exercising past exdividend, you do need to pay them. So the shorter loses more money.
Thats with the assumption that part of ackman's short comes from said options writers. Which is probably is. Maybe he did an OTC deal with a mutual fund, where ackman probably borrowed the shares from or something.
Settled at the close where Carl surrendered hos options to the pal dealer at the price they agreed on and the dealer delivered the shares to Icahn.
Many people here are "confused"... and apprently do not read my posts because i have explained several times that the options are simply going to be delivered and NOT, in and of themselves, going to push up the stock.
Pulling the borrow for next week will crush anyone not locked down on the borrow or long offset shares enabling Ackamn to be short the box... but as that sinks in to the pricing here (forced buying as brokers close out shorts next week) and others join the buying of stock -- including Carl for his remaining second tranche of shares up to 25% before taking further steps, the company's buyback, the other 13f filers pull borrow and resume buying shares, the stock will begin to climb inexorably.
meanwhile, Ackman will be cutting a check for his share of short's requirement to pay the $.30 per share dividend on Monday -- some $6m dollares in his case.
The updated 13D was filed after markets closed. So nobody knew during trading hours. Also, excising options dont really move stocks because its more quiet.
He now owns ~14M shares.
two parties were involved in the transaction; simple way to understand is:
Other party in derivative trade delivered the shares they had in possession. They di not have to buy from the market
Sentiment: Strong Sell