Carl Icahn’s company stock drops 23% after IEP slashes quarterly dividend in half

Shares of Carl Icahn's conglomerate Icahn Enterprises experienced a crisp sell-off Friday aft the steadfast slashed its quarterly dividend successful fractional amid notable abbreviated seller Hindenburg Research's campaign.

IEP announced it issued a $1 per depositary portion distribution, which represents a 12% annualized yield. That's compared with a $2 dividend successful the erstwhile quarter. The banal tanked a whopping 23.2% aft the news.

Icahn's institution has been connected a roller-coaster thrust since the Nathan Anderson-led abbreviated seller took a nationalist abbreviated presumption successful May, alleging "inflated" plus valuations, among different reasons. Shares of IEP, a holding institution that is progressive successful myriad businesses including energy, automotive and existent estate, tumbled astir 44% successful the 2nd quarter. The banal is down 50.5% twelvemonth to date.

Hindenburg took contented with IEP's precocious dividend yield, saying it's "unsupported" by the company's currency travel and concern performance.

"The outgo of aboriginal distributions volition beryllium determined by the committee of directors quarterly, based upon existent economical conditions and concern show and different factors," 87-year-old capitalist Icahn said successful a connection Friday. "We bash not mean to fto a misleading Hindenburg study interfere with this practice."

Icahn Enterprises connected Friday reported a nett nonaccomplishment of $269 cardinal for the 2nd quarter, much than doubling the nonaccomplishment of $128 cardinal from the aforesaid 4th a twelvemonth ago. Icahn attributed the disappointing 4th to the abbreviated selling enactment successful his controlling companies and investments.

"I judge the 2nd 4th partially reflected the interaction of short-selling connected companies we power oregon put in, which I property to the misleading and self-serving Hindenburg study concerning our company. It besides reflected the size of the hedge publication comparative to our activistic strategy," Icahn said.

In the aftermath of Hindenburg's comments, national investigators sought information regarding IEP's firm governance, capitalization, securities offerings, dividends, valuation, selling materials, owed diligence and different materials.

Icahn, the astir well-known firm raider successful history, made his sanction aft pulling disconnected a hostile takeover of Trans World Airlines successful the 1980s, stripping the institution of its assets. Most recently, the billionaire capitalist has engaged successful activistic investing successful McDonald's and biotech steadfast Illumina.