Icahn Eyes Hollywood Ent.

Financier Carl Icahn, one of the best-known corporate raiders of the 1980s, has positioned himself to play a role in what is shaping up to be a takeover battle for video rental store chain Hollywood Entertainment.

Icahn reported in a filing with the Securities and Exchange Commission on Friday that investment vehicles that he controls have bought an 8.4% stake in the nation's second-largest rental firm over the past two weeks.

According to the SEC filing, the Icahn investment groups — all affiliates of Icahn Associates Corp., which is based here — have acquired more than 5.1 million shares of Hollywood Entertainment as of Friday. They could sell those shares or buy additional stock, the document said.

Importantly, the filing said Icahn might — as he often did in takeover battles in the 1980s — either try to take control of Hollywood Entertainment himself or benefit from someone else buying the firm. "Registrants may seek to participate in, and influence the outcome of, any proxy solicitation and the bidding process involving (Hollywood), as a bidder or otherwise," the SEC filing said.

Hollywood Entertainment shares ended last week at $12.88.