Last Updated: May 03, 2023, 02:05 IST
Famed activist investor Carl Icahn. (Image: Hindenberg Research /Twitter)
Hindenberg’s report is the newest in a collection of detailed investigations which have taken on among the greatest names in enterprise
A essential report by the American quick vendor Hindenberg Research into famed activist investor Carl Icahn’s holding firm brought on its share worth to plummet on Tuesday.
Hindenberg’s report is the newest in a collection of detailed investigations which have taken on among the greatest names in enterprise together with the enterprise empire of Indian tycoon Gautam Adani, and the Jack Dorsey-backed funds firm Block.
The launch of the extremely essential report into the enterprise practices of Icahn Enterprises brought on its share worth to fall greater than 25 % on Tuesday afternoon.
Short sellers like Hindenberg take bets on inventory costs taking place, with the potential for giant payouts in the event that they do.
The report alleged that Icahn Enterprises had “inflated” the value of its assets, and that “Icahn has been using money taken in from new investors to pay out dividends to old investors.”
Icahn Enterprises didn’t instantly reply to AFP’s request for remark.
“Such Ponzi-like financial constructions are sustainable solely to the extent that new cash is prepared to danger being the final one ‘holding the bag,'” Hindenberg wrote in its report.
“Overall, we think Icahn, a legend of Wall Street, has made a classic mistake of taking on too much leverage in the face of sustained losses: a combination that rarely ends well,” they mentioned.
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(This story has not been edited by News18 workers and is printed from a syndicated information company feed)
