By Cara Lombardo and Leslie Scism
Carl Icahn holds a roughly $400 million stake in Allstate Corp. and supports the insurer's moves to cut costs and sell more products directly to consumers, according to people familiar with the matter.
The stake amounts to about 1% of Northbrook, Ill.-based Allstate, which has a market value of roughly $40.5 billion.
The billionaire activist bought the position when Allstate's shares were trading around $90 each last year, the people said. Mr. Icahn's team concluded Allstate's share price was significantly undervalued compared to that of rival Progressive Corp., they said.
Mr. Icahn, known for his raucous activist campaigns, has been uncharacteristically quiet at Allstate because the company was already undertaking the changes he had envisioned. It hasn't hurt that the shares closed Tuesday at around $135, buoyed by a cost-cutting plan.
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(END) Dow Jones Newswires