Billionaire financier Carl Icahn is about to reclaim his crown as Mylan Laboratories' largest shareholder.

The current titleholder, hedge fund operator Richard Perry, disclosed yesterday that he intended to liquidate his 9.9 percent stake in the Canonsburg generic drug maker now that Mylan has canceled plans to acquire King Pharmaceuticals.

Perry purchased 26.6 million Mylan shares in order to make sure Mylan shareholders approved the King acquisition. Perry used security-based swap agreements to basically break even on his Mylan investment and intended to make money when Mylan purchased King's shares.

He owned 7 million King shares last fall before trimming his position to 5.9 million shares at year-end.

Perry's maneuvering came to naught because Mylan and Bristol, Tenn.-based King terminated their controversial deal Feb. 27.

Both companies said they tried but failed to negotiate a price lower than the $4 billion all-stock offer Mylan made for King in July.

King shares have fallen 12 percent since then, closing yesterday at $8.97, down 1 cent. Mylan finished at $17.76, down 12 cents.

Perry said in a federal securities filing that he intended to sell Mylan shares on a daily basis "until the entire position is sold." Perry said he reserved the right to change his mind.

Icahn opposed the King acquisition, calling it too expensive and risky.

He owns 26.3 million Mylan shares, giving him a 9.8 percent stake.

Icahn is keeping the heat on the company by nominating his own slate of directors to replace Mylan's existing board.