Among other concerns, Hindenburg had in May called Icahn's pledge of about 60% of his IEP stake as collateral for margin loans a risky form of financing that could result in margin calls should unit prices decline. Shares of IEP are down more than 40% since Hindenburg disclosed its short position. Hindenburg accused IEP of overvaluing its holdings and relying on a "ponzi-like economic structure" to pay dividends and said that IEP units were inflated by more than 75%. IEP did not immediately respond to a Reuters request for comment. (Reporting by Gursimran Kaur in Bengaluru; Editing by Dhanya Ann Thoppil)((GursimranKaur.Mehar@thomsonreuters.com;))The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source: Wall Street Journal July 10, 2023 13:50 UTC