, months after short-seller Hindenburg's criticism triggered a massive fall in the shares of his investment company.
Shares of Icahn Enterprises soared 7.5% in premarket trading on Monday. They are down about 43% since the Hindenburg report came out in May. Icahn will now provide additional collateral, which will total roughly $6 billion, including $2 billion of his own funds, and laid out a plan to repay the loans in three years, the report said on Monday , citing people familiar with the matter.Hindenburg had called Icahn's pledge of about 60% of his IEP stake as collateral for margin loans as risky, which could result in margin calls should the unit's prices decline.
The short-seller accused IEP of overvaluing its holdings and relying on a "ponzi-like economic structure" to pay dividends. It also said IEP units were inflated by more than 75%.Following the amendment, the only thing that could now trigger a margin call is movement in the net asset value of his company’s investments, which include companies and stocks, the report said.
Reporting by Gursimran Kaur and Jaiveer Shekhawat in Bengaluru; Editing by Dhanya Ann Thoppil and Pooja Desai
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: WSJ - 🏆 98. / 63 Read more »
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Schools deploy robots to surveil campus, confront intruders: WSJInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Source: BusinessInsider - 🏆 729. / 51 Read more »