Icahn Enterprises, which says it offers small investors a chance to "invest alongside the iconic Icahn," said Friday it was cutting its dividend in half to $1 a share, the first reduction since 2011. Icahn also published a letter saying that his company would focus again on corporate activism, where it made big profits. He said it would wind down bets that the stock market would collapse, which have inflicted heavy losses.
"Our returns have been overwhelmed by our overly bearish view of the market," Icahn said.
"Going forward, we intend to stick to our knitting and focus on our activist strategy."
The changes come in the aftermath of a campaign launched against the company by activist short seller Hindenburg Research. In May, Hindenburg alleged Icahn Enterprises was overvalued, that its dividend was unsustainable and that Icahn himself had borrowed heavily against his shares in the company, leaving it vulnerable to a selloff.
Icahn said Hindenburg's report was self-serving and misleading. But he stayed unusually quiet as his company's shares tumbled. Icahn owns most of the company's shares, while small investors make up the remainder. The selloff raised the risk that Icahn would suffer a margin call, forcing more selling. There were no obvious buyers to snap up the shares.
この記事は Mint Mumbai の August 05, 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Mint Mumbai の August 05, 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
India in economic sweet spot, inflation to moderate: Moody's
India's economy is in a sweet spot and its inflation is expected to moderate despite a temporary spurt, Moody's said, projecting optimism about the country's growth prospects despite recent underwhelming data.
Incentive engine to drive modern ships
Subsidies for green, high-tech ships under ₹18,000 cr policy
Cement firms wage war on costs as competition soars
India's cement makers who once flexed their pricing muscles are caught in a bruising price war, eroding margins at a time of rising demand.
Saudi Arabia doesn’t have enough money for its futuristic city
The giant futuristic planned city of Neom is proving a headache for Saudi Arabia. Costs are up, schedules are delayed, and in recent days the world’s largest construction project replaced its chief executive of six years.
EV adoption is a marathon, not a sprint: Audi India
The slowdown in electric vehicle (EV) sales is temporary, and the industry will grow over time, Audi India head Balbir Singh Dhillon said, pointing to the need for extensive charging networks and supportive government policies.
India's trade gap with China soars in Apr-Oct
The country's green transition increases reliance on Chinese imports
14 nations eye India's generic drug model
Countries will specify their requirements, with HLL and MEA coordinating with them for the pharma exports
India urges $1.3 tn annual climate grant
Intervening on behalf of like-minded developing countries (LMDCs), India said that developed countries need to commit to provide and mobilise at least $1.3 trillion every year in the New Collective Quantified Goal (NCQG) till 2030.
Over 600 mn cyberattacks daily, AI can secure devices
Microsoft is developing a password-free authentication process to eliminate the risk of breaches
Small businesses ramping up cybersecurity, thanks to AI
Rising AI adoption is helping cybersecurity providers hike their marketable base in India
