(Bloomberg) — Icahn Enterprises LP, under pressure from shorting research firm Hindenburg, said it would pay a $2.00 per unit dividend to investors, sending shares up by the most since 2008.
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The company said in a statement Thursday that unit holders can choose cash or additional units to distribute for the quarter ending March 31.
Icahn Enterprises has not specified if this is a typical quarterly dividend, though it has paid a quarterly dividend of $2.00 since 2019, according to data compiled by Bloomberg.
The move comes two days after Carl Icahn, who has made his career out of starting quarrels with companies, found himself on the receiving end of criticism when the Hindenburg disclosed a brief call against his investment firm.
“We would like to reassure long-term unitholders that the market turmoil caused by the self-serving Hindenburg Report does not affect the liquidity of the IEP,” Icahn said in a statement.
Icahn Enterprises stock jumped 27% on Friday, posting its strongest one-day gain since October 2008. The rally offset a three-day rout after the Hindenburg report. The sell-off sent the stock down 40% through Thursday’s close.
A representative for the Hindenburg did not respond to a request for comment.
Hindenburg, whose founder, Nathan Anderson, allegedly made a name for the company by targeting giants like payments firm Block Inc. , that Icahn Enterprises is overvalued by 75% or more, stating that it trades at a premium of more than 200% to NAV.
Icahn said, “We clearly disagree with the inflammatory assertions in the Hindenburg Report and intend to respond at length – and vigorously defend the Institute for Individualized Education and its holders.”
Icahn Enterprises is scheduled to report earnings on May 10, according to data compiled by Bloomberg.
— with assistance from Matt Turner and Bree Bradham.
(Updates to market closing.)
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