CORRECTED-Carl Icahn lowers Yahoo stake in Q4

(In Feb. 12 story, corrects paragraph 3 to show that Icahn's
Yahoo holdings were as of Dec. 31, 2009, not Feb. 12, 2010, and
that the previous holding was as of the end of September, not
the end of August)

* Investor's Yahoo shares at 12 mln from 62.9 mln-filings

* Genzyme holdings up amid focus on biotech company

By Ross Kerber and Alexei Oreskovic

BOSTON/SAN FRANCISCO, Feb 12 (Reuters) - Billionaire
investor Carl Icahn cut his stake in search firm Yahoo Inc
(YHOO.O) but added shares in biotechnology company Genzyme Corp
GENZ.O, securities filings showed on Friday.

Filings by Icahn and his firm Icahn Capital LP showed the
well-known investor winding down his holdings in Yahoo after
settling a squabble with the company's management in recent
years.

Icahn's stake in Yahoo stood at 12 million shares as of
Dec. 31, 2009, down from 62.9 million shares at the end of
September, according to the filings.

Icahn amassed his stake in Yahoo -- which at one point
represented 5.4 percent of outstanding shares -- amid the
company's contentious acquisition talks with Microsoft Corp.
(MSFT.O) in 2008.

After Yahoo rejected Microsoft's $47.5 billion offer, Icahn
mounted a proxy contest seeking to oust the Yahoo directors. He
eventually reached a settlement that gave Icahn and two of his
director nominees seats on the company's board.

Icahn resigned from Yahoo's board in October 2009, after
Yahoo signed a 10-year deal with Microsoft in which Yahoo will
use Microsoft's back-end search technology on its Web portal.

But Friday's filing showed Icahn may be girding to press
for changes at another company, Massachusetts biotechnology
company Genzyme. His holdings rose to 4.8 million shares as of
Dec. 31 from 1.5 million shares three months earlier.

A source told Reuters in January that Icahn may consider a
proxy battle with Genzyme's management, which in turn has
struck an alliance with rival investor Ralph Whitworth.

Icahn also has forced board changes at another Cambridge
biotech firm, Biogen Idec Inc (BIIB.O). His stake in that
company stayed the same around 16 million shares through
December, the filings showed.

Another change in the quarter was a stake of 12.1 million
shares Icahn took in financial firm CIT Group Inc (CIT.N),
according to the filings.
(Reporting by Ross Kerber and Alexei Oreskovic; Editing by
David Gregorio)