Biogen Idec (NDAQ: BIIB) directors may be in for a fight after billionaire activist Carl Icahn announced the nomination of three candidates to the company’s board of directors. The news comes shortly after the investor bought up millions of Biogen shares last summer, which led to a search for potential suitors in October. The company then abandoned the idea in December when no bidders emerged, which sent shares plummeting. Carl Icahn now believes that he can do better - the question is whether shareholders should believe him.

Carl Icahn is well known for actively pushing for changes in companies he invests in, and he is no stranger to the pharmaceutical scene. Last spring, he successfully fought for MedImmune to sell itself, which led to its acquisition by AstraZeneca for $15.6 billion. He has also pushed for changes in hundreds of other companies in order to drive impressive returns throughout his tenure as one of the most successful activist investors in the marketplace ever. Many, however, point to his recent failure at Motorola as a sign that the times may be changing.

Many shareholders are speculating that Icahn’s recent investment in Biogen suggests that hecould be preparing a buyout bid or may seek to unlock value in the firm’s shares by encouraging a higher bid by a major pharmaceutical company. The shares ran up substantially when the company announced its previous search for a buyer, and the same thing could happen now if the investor pushes for a sale. However, there is one key difference this time around - the credit markets. It is very difficult to obtain attractive financing in this environment for M&A, which could be a major barrier to any potential sale.

In the end, Biogen shareholders should be happy that a well known activist at least has an interest in their company. A potential sale process could send shares much higher in the short-term while a turnaround could help shareholders in the long run. Either way, these options are better than what the current management can offer and you can be sure that Icahn’s interests are aligned with those of shareholders given his four percent stake in the company. Combined, these factors make BIIB a stock worth watching!

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