Market Overview

Carl Icahn Assumes Ownership Stake in Hertz Global

Activist investor Carl Icahn has picked a new battle for 2014.

On Friday, CNBC broke the news that Icahn is the investor that has amassed a stake of 30 million to 40 million shares in Hertz Global (NYSE: HTZ).

On December 31, various media reports indicated that Dan Loeb's Third Point was behind the “unusual and substantial activity” in Hertz shares that prompted the company to implement a “poison pill” policy.

Third Point maintains an ownership stake of less than 5 percent and according to Bloomberg, Third Point "doesn't plan to pursue an activist position."

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Icahn's intention, on the other hand, are not known at this time. Suffice to say, the billionaire investor could be up to his usual tricks.

Under the poison pill plan, Hertz will issue one preferred share purchase right for each share of common stock on January 9. The rights can't be exercised until 10 percent of Hertz shares are acquired by one person or group. The threshold for a passive institutional investor, in this case, Carl Icahn, would be 15 percent.

According to a Hertz statement, the poison pill plan is aimed at “reducing the likelihood that any person or group would gain control of Hertz through open market accumulation without appropriately compensating the company's shareholders for such control or providing the board sufficient time to make informed judgments.”

Shares of Hertz surged to new 52-week highs of $29.81 on Friday following CNBC's announcement of Icahn's involvement.

Posted-In: Dan Loeb Hertz Hertz Poison Pill Icahn Hertz third pointNews Offerings Management Best of Benzinga

 

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