Icahn Enterprises, the investment firm founded by billionaire Carl Icahn, has announced that it will pay a dividend of $2.00 per unit to its investors for the quarter ending March 31. The company did not clarify if this was its usual quarterly dividend, although it has paid out a $2.00 dividend per quarter since 2019.
This announcement comes just two days after short seller Hindenburg Research disclosed a short call against Icahn Enterprises. Hindenburg has claimed that the company's value is inflated by 75% or more, pointing out that it trades at a premium of more than 200% to its net asset value.
Icahn Enterprises' shares fell more than 40% in the three sessions after the Hindenburg report's release, but they gained as much as 11% in post-market trading on Thursday following the announcement of the dividend. Unitholders have the option of receiving cash or additional units as the distribution.
Icahn released a statement reassuring long-term unitholders that the Hindenburg report does not affect the company's liquidity. The company is scheduled to report earnings on May 10.
Hindenburg, known for targeting corporate giants such as Block Inc., has not responded to Icahn's statement. Icahn has vowed to respond to Hindenburg's claims and to vigorously defend Icahn Enterprises and its unitholders.
Social Plugin