Business
The Rise and Fall of Carl C. Icahn: A Wall Street Saga
Explore the captivating journey of Carl C. Icahn, a titan of Wall Street, as we delve into his rise to prominence, strategic maneuvers, and eventual decline. Discover the lessons learned from his saga and the impact on the financial world.
For decades, Carl C. Icahn has been a formidable presence in the world of finance, instilling both fear and respect among chief executives of public companies. The 88-year-old investor gained notoriety—and amassed billions—by challenging corporate decision-making and advocating for substantial changes at major firms such as Apple, RJR Nabisco, and Netflix.
However, the tables have turned, and Mr. Icahn now finds himself under intense scrutiny from Wall Street investors. Over the past year and a half, the shares of Icahn Enterprises, his publicly traded investment firm, have plummeted by more than 75 percent, erasing nearly $20 billion in market value. Following a staggering decline of over 30 percent since mid-August, the stock is now trading at approximately $11 per share, marking its lowest point in over two decades.
With Mr. Icahn holding around 86 percent of the shares, he has personally felt the sting, suffering significant financial losses himself. “There’s a confidence game at play here, and he has undeniably lost the trust of investors,” remarked Don Bilson, head of event-driven research at Gordon Haskett Research Advisors, who specializes in activist investing.
Concerns are mounting among Wall Street investors that the ongoing decline of the stock could jeopardize the overall health of Icahn Enterprises. Many fear that the firm may be compelled to divest some of its holdings. Icahn Enterprises boasts a diverse portfolio that includes public stocks, real estate, and various other investments, as noted by Mr. Bilson and several other experts monitoring the market.
Amidst this turmoil, investors have begun to speculate about whether Mr. Icahn himself has been liquidating his shares. Reports indicate that he has secured personal loans using his stock as collateral. Generally, banks that provide such loans impose stringent requirements related to a company’s market value. A significant decline in stock prices can trigger lenders to sell shares to mitigate their risk.