Hindenburg's Short Report Causes Icahn's Empire to Plummet
Short investor Hindenburg Research accused Icahn Enterprises LP (IEP) of overvaluing its holdings and relying on a “Ponzi-like” structure to pay dividends, leading to a 20% drop in the shares of activist investor Carl Icahn’s firm. Hindenburg said IEP’s units are overvalued by more than 75% and that “IEP trades at a 218% premium to its last reported net asset value (NAV), vastly higher than all comparables.”