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Icahn Enterprises issues dividend after Hindenburg attack

Icahn Enterprises issues dividend after Hindenburg attack
Chairman of Icahn Enterprises Carl Icahn participates in a panel discussion at the New York Times 2015 DealBook Conference at the Whitney Museum of American Art on November 3, 2015 in New York City. (Photo by Neilson Barnard/Getty Images for New York Times)

Icahn Enterprises, under pressure from short seller Hindenburg Research, said it would pay a dividend of $2 per unit to investors, sending shares higher after market. 

Unitholders can opt for cash or additional units for the distribution for the quarter ending on 31 March, the firm said in a statement on Thursday. 

Icahn Enterprises didn’t specify whether this was its typical quarterly dividend, although it has paid out a quarterly dividend of $2 since 2019, according to data compiled by Bloomberg.

The move comes two days after Carl Icahn, who’s made a career out of starting corporate brawls, found himself on the receiving end of criticism when Hindenburg disclosed a short call against his investment firm. 

“We would like to reassure our long-term unitholders that the market disruption caused by the self-serving Hindenburg report does not affect IEP’s liquidity,” Icahn said in a statement. 

Icahn Enterprises gained as much as 11% in post market trading on Thursday after falling more than 40% in the three sessions since the release of the Hindenburg report.

A representative for Hindenburg didn’t respond to a request for comment. 

Hindenburg, whose founder, Nathan Anderson, made a name for the firm by targeting corporate giants like payments company Block Inc and Adani, has claimed Icahn Enterprises’ value is inflated by 75% or more, noting that it trades at a premium of more than 200% to its net asset value.

“We obviously disagree with the inflammatory assertions in the Hindenburg report and intend to respond at length — and to vigorously defend IEP and its unitholders,” Icahn said. 

Icahn Enterprises is scheduled to report earnings on 10 May, according to data compiled by Bloomberg. BM/DM


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