Hindenburg Research Goes After Carl Icahn In Latest Campaign For Marketmoving Short Seller

Hindenburg Research Goes After Carl Icahn In Latest Campaign For Marketmoving Short Seller
Carl Icahn speaks at Delivering Alpha on September 13, 2016 in New York City. © CNBC Carl Icahn speaks at Delivering Alpha in New York on September 13, 2016.

Prominent provider Hindenburg Research is looking for prominent activist investor Carl Icahn.

The Nathan Anderson-led company took a short position against Icahn Enterprises, accusing Icahn Enterprises of "inflating" asset valuations, including an allegedly unusually high premium to the parent company's public equity investment equity.

“Overall, we believe Wall Street legend Icahn made the classic mistake of taking on too much leverage in the face of sustained losses, a combination that rarely ends well,” Hindenburg Research said in a statement released Tuesday.

Shares fell 20% on Tuesday.

The most notorious corporate thief in history, Icahn made his name in the 1980s after taking over a rival airline, Trans World Airlines, and stealing its assets. More recently, the billionaire investor has been involved in activist investing at McDonald's and the biotech company Illumina.

Headquartered in Sunny Isles Beach, Florida, Icahn Enterprises is a holding company engaged in a variety of businesses including energy, automotive, food packaging, metals and real estate.

According to FactSet, the conglomerate pays a 15.9% dividend. Hindenburg said he believes the company's high dividend yield is not supported by the company's cash flow and investment returns.

Icahn responded in a statement that the Hindenburg report aimed to profit from his short position at the expense of Icahn Enterprises' long-term stakeholders.

“We respect our disclosure and believe that over the long term, as always, the performance of the IEP will speak for itself,” Icahn said. "We continue to believe that activism is the best paradigm for investing, and our investments in activism over the past 25 years have proven that correct."

Shares of Icahn Enterprises fell 20.3% on the year.

Hindenburg Research followed famed activist investor Carl Icahn

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