Icahn Enterprises' Bloodbath Continues: Stock Plummets 21% To 14-Year Low, 60% Dip Since Hindenburg's Ponzi Claims

Icahn Enterprises L.P. IEP, the holding company owned by billionaire investor Carl Icahn, experienced another bloodbath on Thursday, plummeting 21% after dropping by 13% the day before, and on track for the worst session of its history. 

This comes after Icahn's archenemy hedge-fund manager Bill Ackman, CEO of Pershing Square Capital Management, released a detailed tweet Wednesday comparing Icahn Enterprises to Archegos. 

Shares of Icahn Enterprises have plummeted over 60%, reaching lows not seen since March 2010, nearly 14 years ago, since Hindenburg Research alleged on May 2 that Icahn was conducting a Ponzi scheme.

The Predator Is Now Vulnerable Prey

The feud between Icahn and Ackman dates back to 2012, when the billionaire investors held conflicting market positions on supplement company Herbalife Ltd. HLF. In his quest to expose it as a pyramid scheme, Ackman lost a staggering $1 billion.

Now, with the timing seemingly appropriate, Ackman is releasing his expressing his longstanding disagreements against his adversary.

A price premium of more than 50% compared to its net asset value is still present in Icahn Enterprises, according to Ackman. "Its performance history and governance structure do not justify a premium; rather they suggest that a large discount to NAV would be appropriate," Ackman wrote on Twitter.

"IEP reminds me somewhat of Archegos," the Pershing Square Capital Management's chief said. 

Archegos was the company responsible for billions of dollars in losses for banks who were unaware of the firm's overleveraged position in 2021.

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Chart: Icahn Enterprises In Freefall

Icahn's Wealth Evaporating

Following the report by short-seller Hindenburg, the market capitalization of Icahn's firm has plummeted by over $11 billion, bringing it down to $7.1 billion - the lowest it's been in six years.

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