Icahn, 87, is the latest billionaire to be targeted by Hindenburg this year after the US-based short-seller went after Gautam Adani and Block Inc.’s Jack Dorsey.
Activist investor Icahn made his name after pulling off a hostile takeover of Trans World Airlines in the 1980s. Most recently, the billionaire investor has engaged in activist investing in McDonald’s and biotech firm Illumina.
Last week, Hindenburg accused Icahn Enterprises LP of over-valuing its holdings and relying on a "Ponzi-like" structure to pay dividends.
Icahn owns about 85% of IEP and has pledged over 60% of his stake as collateral for personal loans. Forbes said the Hindenburg report has wiped $7.5 billion off Icahn's fortune, leaving him with a net worth of $10.8 billion.
Nathan Anderson-led Hindenburg has claimed Icahn Enterprises’ value is inflated by 75% or more, noting that it trades at a premium of more than 200% to its net asset value.
Known for his face-offs with industry heavyweights such as AIG and McDonald's Corp, Icahn has never seen his firm become a target of activist investing.
Icahn said he disagrees with "the inflammatory assertions" in the Hindenburg report and intend to respond at "length – and to vigorously defend IEP and its unitholders".
In January, Hindenburg accused Gautam Adani-led Adani Group of improper use of offshore tax havens and stock manipulation, which the conglomerate denied.
Hindenburg had accused Jack Dorsey-led Block of overstating its user numbers by allowing fake or duplicate accounts to exist on its Cash App platform.
Hindenburg’s attacks on the companies of Adani and Dorsey caused drops in their fortunes in 2023 of $58 billion and $500 million, respectively, reported Bloomberg earlier this month.