Shares of Icahn Enterprises LP are falling in after-market trading Monday evening on the news that activist investor Carl Icahn and his company wants more cash and are selling shares in order to get it.
In a statement released Monday evening, Icahn said it is selling 2,000,000 depositary units representing limited partnership interests in Icahn Enterprises. At a price of $144.39 per share, the deal would produce nearly $289 million, proceeds that the company said will be used for investments in one or more of its nine majority-owned operating subsidiaries — in other words, companies that Icahn went activist on and then bought. The list of these companies includes American Railcar Industries, Tropicana Entertainment, AREP Real Estate Holdings and home fashion company West Point Homes.
According to a Form 8K filed with the SEC Monday evening, these units have a net asset value of $8.67 billion. The press release did not mention companies in which Icahn has a non-majority stake, like Apple, Chesapeake Energy, Netflix and Herbalife.
The sale will close on December 13, 2013, pending customary closing conditions, the company said. Morgan Stanley is acting as the sole book manager for the deal.
Shares of Icahn Enterprises dropped quickly after the announcement, and are currently down more than 7% for a $10 loss. Year-to-date the stock has more than doubled its value, posting a 202% increase to-date.
The normally Twitter-happy billionaire was silent following the news, his last tweet transmitted a full nine hours earlier. In that tweet, he touted Hologic's addition of two Icahn men onto its board and linked to an SEC filing in which he, naturally, bragged that that his involvement with boards creates meaningful value for all shareholders.
Earlier this month, TIME magazine put Icahn on its cover not as its person of the year, but as the "most important investor in America." To see other market-moving investors, click through the slideshow below.
5 Investors Who Move The Market
No comments:
Post a Comment