Icahn Enterprises continues to tumble following Hindenburg short report, Bill Ackman’s responses

Associated Press

WASHINGTON (AP) — The business empire of corporate raider and activist investor Carl Icahn continues to tumble amid the fallout following a recent report from short-selling firm Hindenburg Research — and losses are accelerating as a longtime rival echoes the firm’s allegations. In the report, published on May 2, Hindenburg claimed that Icahn Enterprises has been using inflated asset valuations. The report also pointed to “ponzi-like economic structures” at the company — alleging that Icahn has used money from new investors to pay out dividends to old ones. Some critics of Icahn, notably Bill Ackman, say the report’s findings feel like a full-circle moment for the Wall Street legend who was well-known to target weak companies and sell them for parts.