– ICAHN INTERESTED IN PENNEY’S?: A spokesman for Carl Icahn declined to comment on a Wall Street Journal report the billionaire investor has acquired a large stake in J.C. Penney Co. Inc. According to the report, Icahn is now one of the retailer’s five largest shareholders. Penney’s shares rose 2.4 percent Friday on the news, closing up $1.15 to $48.50. But a Penney’s investment wouldn’t be Icahn’s only flirtation with retail these days — he also has a large stake in Macy’s Inc. and admitted to WWD recently that he was considering further investments in the sector. “You retail companies are in major stock trouble and that’s what I like,” he said last month. “If you look at the godd–n cash flow, they’re doing great. The one question I ask is, ‘Why aren’t you buying back your stock?’ Now is the time to look at these things.”

This story first appeared in the February 2, 2008 issue of WWD.  Subscribe Today.