Why Icahn Enterprises Stock Is Up Big Today
Famed investor Carl Icahn has taken steps to eliminate a key criticism that a short-seller hurled at his Icahn Enterprises (NASDAQ: IEP). Investors are celebrating the move, sending shares up as much as 15% on Monday morning.
Through most of his half-century career, Icahn has been the one putting pressure on public companies. But in early May, short-seller Hindenburg Research put him on the defensive. The firm called Icahn Enterprises "substantially overvalued," saying the company overstated the value of its portfolio and relies on a "Ponzi-like" structure to fund operations.
Hindenburg was also critical of Icahn's habit of pledging his company's shares as collateral for his personal margin loans. Icahn owns 85% of the company, and about 60% of his shares were pledged as collateral for personal loans.
Source Fool.com
