- Hindenburg Research has stepped up its market offensive against Carl Icahn's firm, days after it accused the billionaire of running "Ponzi-like" structures.
- The short seller disclosed on Thursday that it has opened a short position in Icahn Enterprises bonds.
Hindenburg Research stepped up its market offensive against Carl Icahn's business empire, just days after it published a bombshell report accusing the billionaire of running "Ponzi-like" structures.
In a follow-up note released on Thursday, Hindenburg disclosed it had opened a short position in the bonds of Icahn Enterprises (IEP), and said the holding company failed to address any of the key issues flagged in the May 2 report.
"Perhaps most importantly, the company failed to disclose basic details of Carl Icahn's margin loans, which we strongly suspect represent a near-term critical threat to IEP unitholders," Hindenburg said on Thursday.
"We are short units of Icahn Enterprises L.P. (NASDAQ: IEP) and have initiated a short position in IEP bonds," it added.
The short seller's latest move comes after Icahn Enterprises posted a surprise quarterly loss on Wednesday and disclosed that it had been contacted by the US Attorney's office on May 3, a day after the Hindenburg released the report that accused the Icahn's company of artificially inflating its assets.
Icahn, who serves as the firm's chairman, wasn't present at the company's first-quarter earnings call, though he responded to the Hindenburg claims in a statement released later on Wednesday.
"Mr. Anderson's modus operandi is to launch disinformation campaigns to distort companies' images, damage their reputations and bleed the hard-earned savings of individual investors," Icahn said, referring to Hindenburg's founder Nathan Anderson. "But, unlike many of its victims, we will not stand by idly. We intend to take all appropriate steps to protect our unitholders and fight back."
Shares of Icahn Enterprises are down nearly 40% since Hindenburg's report was first released earlier this month.
Icahn Enterprises did not immediately respond to Insider's request for comment.