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Icahn to the Rescue of Cyberonics?

Cyberonics, a maker of neurostimulation technology, has been reeling lately, following the resignation of two top executives after a stock-options scandal and a report from its auditor indicating serious financial trouble. Now Carl Icahn, who has made his mark as -- depending on your perspective -- a corporate raider or a turnaround artist, is getting involved.

Icahn has accumulated a 9.77% stake in Cyberonics and is backing an effort to have three directors replaced, Reuters reports. With the shakeup in management, rumors have started that the firm will be sold, and potential buyers may think they can get a bargain compared to what competitors Advanced Neuromodulation Systems and Advanced Bionics went for. But you can be sure Icahn will do whatever he can to increase the company's value before a sale. Cyberonics was named one of MD&DI's 50 Companies to Watch last June. We were right -- but for a different reason.

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