Lost your password?
Don't have an account? Sign Up

Hindenburg research strikes Icahn Enterprise

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.

Tweet on Icahn enterprises stock plunge

Factset Chart on Icahn Enterprise

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.


Image: Hidenburg Research