UPDATE 2-Jana Partners in Q3 took new Valeant stake, upped eBay stake

Fri Nov 14, 2014 4:56pm EST
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(Adds McDonald's statement)

By Luciana Lopez and Lisa Baertlein

NEW YORK Nov 14 (Reuters) - Jana Partners LLC, the $11 billion hedge fund run by Barry Rosenstein, took a new stake in Valeant Pharmaceuticals International Inc and vastly increased its holdings of online auction site eBay Inc in the third quarter, according to a regulatory filing on Friday.

Jana bought 1.284 million shares of Valeant, which has been trying to buy Botox-maker Allergan Inc this year. But the hostile bid soon brought scrutiny from the U.S. Securities and Exchange Commission, which began looking at the potential deal in August.

Jana added more than 12 million shares of eBay, bringing its total stake to 13.063 million shares.

EBay this year bowed to pressure from activist investor Carl Icahn to spin off its PayPal payments service. The action is expected to give PayPal more flexibility to make deals in the rapidly evolving payments sector as growth in eBay's traditional e-commerce business slows.

Jana declined to comment. Messages to eBay and Valeant requesting comment were not immediately returned.

Rosenstein's fund also increased its stakes in Groupon Inc by 10 percent, for a total of 51.68 million shares, and increased its stake in Walgreen Co, by 12.5 percent, for a total 12.5 million shares.

In September Rosenstein won a seat on the Walgreen board.   Continued...