Icahn Enterprises soars after Carl Icahn unties personal loans from share price

Iep Invest NV

10/07/2023 15:33

(Updates prices, adds confirmation of report)
** Shares of Icahn Enterprises LP  IEP.O  up 14.9% at $33.15, on
track for biggest one-day pct gain since May 5 after billionaire
activist investor Carl Icahn amended terms of his personal loans
to separate them from the price of IEP depositary units
        ** The move, disclosed by the investment firm in a
filing on Monday, follows a short-seller report by Hindenburg
Research. The amendment was first reported by the Wall Street
Journal 
    ** WSJ said Icahn has agreed to provide additional
collateral, which will total roughly $6 bln, including $2 bln of
Icahn's own funds, and laid out plan to repay the loans in three
years, WSJ reported, citing people familiar with the matter
    ** Hindenburg had called Icahn's pledge of about 60% of his
IEP stake as collateral for margin loans a risky form of
financing that could result in margin calls should IEP prices
decline
    ** Shares of IEP closed at $50.42 on May 1, a day before
Hindenburg accused it of overvaluing its holdings and operating
a "ponzi-like" structure to pay dividends
    ** Icahn had called the report "self-serving" and vowed to
"fight back"
    ** For the year-to-date IEP shares still down ~34% and on
track for biggest annual pct decline since 2008

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own. Additional reporting by Sinéad Carew)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))