Icahn Enterprises: Last Friday, Carl Icahn’s firm cut income by 50%. This intelligent move came months after a notable investor attacked the company’s payment system, which caused many shareholders to sell.
Icahn Enterprises (IEP.O) saw its shares plunge 23% this week. They lost a lot. The company’s value has dropped over 50% since May 2. Today, Hindenburg Research said the corporation pays dividends like a Ponzi scheme.
Famous political investor Carl Icahn is essential. He doesn’t believe Hindenburg’s claims. Therefore, he has continued them. He denies them.
After that, Icahn changed his loans to require collateral if share prices fell. He did this to earn more money in a weak market.
On that crucial Friday, Icahn wrote that his firm wanted to advocate for things, adjust its methods, and conduct less hazardous business since they thought the market would fall.
Hindenburg posted on X, formerly Twitter that it was against IEP.
If financial performance didn’t improve unexpectedly, Hindenburg suggested Icahn Enterprises may lower or cancel its payment allocation.
IEP also told its shareholders it would pay $1 for each depositary unit for the second quarter. This is a fraction of the $2 per unit payout.
The company’s SEC partnership is significant. The regulatory body inquired into the firm and its partners in June. The SEC and U.S. Attorney’s office haven’t charged IEP or Carl Icahn with the investigations.
IEP’s finances deteriorated throughout the quarter. $269 million—72 cents per depositary unit—was lost. Compare this to the previous year, when the deficit was $128 million, or 41 cents per unit.
Friday’s share price was $20.54. They’re the lowest in over two months. Icahn disputed the accusations despite his troubles. He vowed to avenge the claims firm.
Icahn Enterprises boldly said they would maintain payouts. Hindenburg’s tale needed to be corrected and didn’t affect their intentions.
Icahn wrote to the company’s owners that focusing on its fundamental action plan was excellent. In the last six months, hedge trades have decreased dramatically. This demonstrated market uncertainty. The wealthy investor wrote about honesty and change.
Icahn’s $3.7 billion personal loan change is nice. This new method allowed him to provide security without considering his company’s share price.
IEP said in May that it was helping the U.S. Attorney’s Office for the Southern District of New York investigate Hindenburg’s shocking allegations. Since Hindenburg has yet to release any fresh material, the government’s interest in them must be clarified.