Shares of Icahn Enterprises L.P. (IEP) are losing 18% on Thursday trade a day after the company's rival Bill Ackman called out its high valuation.
Icahn is currently trading at $19.55, down 18.34 percent or $4.39, in its regular trading session. The stock opened its trading at $21.77 after closing Wednesday's trading at $23.94. The stock has traded between $18.03 and $55.16 in the past 52-week period.
Ackman tweeted on Wednesday that the dividend yield of IEP is achieved by distributing capital to external shareholders, and this capital is obtained through the company's sale of stock to investors. This statement echoes the accusation made by Hindenburg, suggesting that IEP is relying on a "Ponzi-like structure" to finance dividend payments.
Ackman clarified that he does not currently hold any long or short positions in the stock. A notable conflict occurred ten years ago when Ackman took a short position on the supplement company Herbalife, in which Icahn, an activist investor, held shares.
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