Hindenburg research strikes Icahn Enterprise

May 3, 2023 thejournalbiz

Shares in Icahn Enterprises, the publicly-traded holding company of star investor Carl Icahn, were down as much as 20% Wednesday morning after short-seller Hindenburg Research published a report saying the company inflated marks on its assets and was overvalued and over-leveraged.

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Shares in Icahn Enterprises, the publicly-traded holding company of star investor Carl Icahn, were down as much as 20% Wednesday morning after short-seller Hindenburg Research published a report #shorts #Hindenburg #IcahnEnterprises pic.twitter.com/PWg1xMVIIy

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In response, Icahn said Tuesday afternoon that Hindenburg’s report was self-serving and stood by its public disclosures. It said it believes its performance will speak for itself.

Before the report’s publication, Icahn had a market valuation of roughly $18 billion. It was worth roughly $11.3 billion Wednesday morning.

The decline is a significant blow to the fortune of Mr. Icahn, 87, himself a famed activist investor and corporate raider who has tormented executives for decades. Around 85% of the company’s shares were owned by vehicles controlled by Mr. Icahn according to company disclosures, and roughly 60% of those shares have been pledged as collateral for personal loans.

Steep declines in the shares could force Mr. Icahn to post more collateral for the loans.