Billionaire Carl Icahn Loses Big on His Hertz Investment

Famed billionaire investor Carl Icahn had a big stake in Hertz Global Holdings Inc. and paid a big price unloading it after the company filed for bankruptcy.

Icahn was the largest shareholder in Hertz and unloaded his entire stake in the rental car company at a “significant loss” days after it filed for bankruptcy protection.

According to a regulatory filing made on Wednesday, Icahn sold 55.34 million shares on Tuesday at 72 cents per share.

He had held a nearly 39% stake in Hertz and had three representatives on the board.

In the filing, Icahn said that Hertz fell victim to coronavirus shutdowns that dramatically curtailed travel and created major financial hardships for the company. He added that he supported the board’s decision to seek bankruptcy protection last Friday.

Icahn additionally said that he still believed in the company and thinks it can be a “great company”
in the future. At the end of 2019, his stake in Hertz was worth close to $700 million.

“I intend to closely follow the Company’s reorganization and I look forward to assessing different opportunities to support Hertz in the future,” he said.

Disclaimer: We have no position in Hertz Global Holdings Inc. (NYSE: HTZ) and have not been compensated for this article.