Carl Icahn revealed an increased stake in BEA Systems, Inc. (NDAQ:BEAS) in a Schedule 13D/A filing with the SEC today. The news comes amid a push from the activist investor towards a sale of the company, despite hefty opposition from executives.

Icahn increased his holdings to 43.3 million shares, or 11.05%, from 38.72 million, or 9.88% in September. His holdings also include call options to purchase BEA shares, which are presumably reserved incase a proxy battle results from this conflict when he could exercise the shares for increased voting control.

Mr. Icahn said in past filings that he believes that a sale of the company to a strategic acquirer will maximize the price of the shares. The billionaire investor also said he was seeking talks with management to discuss possibilities of a deal and said he may seek to nominate members for election to the Board of Directors.

In the end, this is great news for shareholders as any sale of the company would likely result in a substantial premium being paid. Icahn also has an impressive trackrecord of success with all the companies that he has been involved with. Combined, these factors make BEAS a stock worth watching!

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Sprint Nextel Corp. (NYSE:S) shares rose $0.79, or 4.21%, to $19.55 during today's session on news that activist investor Ralph Whitworth is turning up the heat on chief executive Gary Forsee and other directors. Shareholders are hoping that the activist can help implement change in the nation's third largest wireless carrier, which has both lost customers and seen its shares drop 27% since its 2005 acquisition of Nextel.

Ralph Whitworth said in an interview that he has "lost confidence in Gary Forsee ... primarily because of management's inability to forecast the company's results and their apparent inability to address the fundamental issues surrounding the core business." Those close to the situation say Whitworth has been pushing for a meeting with the board before the company's annual strategic-planning weekend early next month.

Many of these investors have concerns over the company's WiMax initiative in which the Sprint plans to dump over $5 billion into by 2010. While the company hopes to realize $2 billion in revenue by that time, many are skeptical and have expressed concerns about such a large investment in an emerging technology and platform.

Meanwhile, Sprint claims that it is ontrack for a turnaround with a small 16,000 increase in "post-pay" subscribers, which are its highest valued segment. But many investors and analysts are not convinced that the company is back on track - at least enough to justify the giant new WiMax project. In the end, an activist like Whitworth may be able to talk some sense into the company and ensure that shareholder value is preserved. This makes S a stock worth watching!

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A large Inksure Technologies (OTC:INKS) shareholder demanded that the software company immediately work to unlock shareholder value through a sale, merger or restructuring, according to a Schedule 13D/A filing with the SEC. Shareholders are hoping that the activist investor can convince the company to unlock value in the short-term.

James E. Lineberger Jr., who owns 8.2% of the company, said in a letter to the board that a strategic buyer for Inksure is in the best interest of all stakeholders given the company's lackluster growth and undervaluation. Moreover, action should be taken now while the company still has some momentum, a credible customer base, newly introduced technology, and cash balances to support its operations.

"As we consider the Company’s future based on its past operating and financial history and contrast it with its capital requirements, it is evident to us that immediate action is required by the directors to protect shareholder value," said Lineberger. "It is not in the best interest of stockholders (or for that matter any other stakeholders) for Inksure to remain independent."

Currently, Inksure is running an accumulated deficit of $17 million due to expenses related to its RFID project research and development. With no clear end in sight for the continuing development expenses and the uncertainty of the viability of the RFID project, the cash drain is likely to only continue.

There is also question as to management's integrity, "Further, it is clear to us that a substantial number of shareholders and other stakeholders of the Company have lost faith in the Chairman/CEO of the Company and believe that he has no credibility in the marketplace."

In the end, a sale process could generate substantial returns for shareholders and is probably the best available solution for the company. It will be interesting to see if the board agrees with the activist investor and hires and investment bank to explore its options. Meanwhile, this is definitely a stock worth watching!

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