Shares of Icahn Companies slumped after slashing its dividend in the wake of the short seller's attack

Shares of Icahn Enterprises (IEP) fell greater than 24% in intraday buying and selling Friday after the corporate halved its dividend within the wake of a scathing report focusing on the corporate by short-selling agency Hindenburg Analysis.

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  • Shares of Icahn Enterprises fell by double digits on Friday after the dividend was lower.
  • The corporate stays below strain after a financial report from short-selling analysis agency Hindenburg.
  • Shares of Icahn Enterprises have misplaced half their worth because the report was revealed.

The funding agency owned by Carl Icahn stated it’s going to distribute $1 per unit of deposit to its buyers for the second quarter, which is half the same old $2 per unit. The corporate has been below strain since a short-selling report from Hindenburg Analysis accused the corporate of operating a “Ponzi-like” dividend-paying construction. A federal investigation adopted.

The Hindenburg Report claimed that the funding agency’s valuation had been inflated by 75%, with 218% of its web asset worth (NAV) being traded. In distinction, it reported, related funds owned by activist buyers Dan Loeb and Invoice Ackman traded at a reduction of -14% and -35%, respectively.

Because the report’s launch, shares of Icahn Enterprises have shed half their worth, however Hindenburg stays bearish on the corporate, writing on Platform X, “On Could 2nd, we anticipated Icahn Enterprises to finally lower or cancel its whole dividend, barring a miraculous turnaround in efficiency.” Enterprise…we’re nonetheless quick.”

Carl Icahn stated in a letter revealed on Friday that his firm will refocus its technique on activist investing after some quick bets on the inventory fell.

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