Shortseller claims Icahn is cooking the books… Company under Federal probe… Live quote on Icahn shares…

via CNBC:

Icahn Enterprises, Carl Icahn’s conglomerate, saw its stock drop again Wednesday after a disclosure showed federal investigators are seeking information regarding its corporate governance.

The shares fell 15.1% Wednesday, following a near 25% loss last week. A regulatory filing revealed the U.S. attorney’s office for the Southern District of New York contacted Icahn Enterprises last Wednesday seeking information about corporate governance, capitalization, securities offerings, dividends, valuation, marketing materials, due diligence and other materials.

Investigators sought information a day after notable short seller Hindenburg Research took a short position against Icahn’s company. Hindenburg alleged “inflated” asset valuations last Tuesday, among other reasons, for what it says is an unusually high net asset value premium in shares of the publicly traded holding company.

Live quote on Icahn shares…

We are primarily funded by readers. Please subscribe and donate to support us!

Carl Icahn company under Federal probe…

Activist investor Carl Icahn disclosed that his investment company is under investigation by federal prosecutors and went on the attack against the short seller that likely spurred the inquiry, accusing it of “wantonly destroying property and harming innocent civilians.”

Icahn Enterprises IEP -15.14%decrease; red down pointing triangle, the publicly traded firm controlled by Mr. Icahn, was targeted by short seller Hindenburg Research early this month. The next day, the U.S. Attorney’s Office for the Southern District of New York contacted Icahn Enterprises asking for information about the value of its assets, corporate governance, dividends and other topics, the firm said in a securities filing Wednesday.

Icahn Enterprises said in the filing that it is cooperating with the investigation and doesn’t believe it will have a significant impact on the business. The firm’s shares declined 15% Wednesday and are down 36% since the report.

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.