Wealthy billionaire investor Carl Icahn has pulled out his entire investment from Hertz Global Holdings Inc. (HTZ) just days after the embattled car rental company filed for bankruptcy.
Until his exit, Icahn was the largest shareholder at the company having 39% stake in Hertz, in addition he had three representatives on the company’s board. On May 26, the billionaire sold his entire stake of 55.34 million shares at a price of 72 cents per share.
Icahn had acquired the stake back in 2016 when the company separated from Herc Holdings Inc. (HRI), in which he also had representatives in the company’s board. The billionaire is fond of saying investors should only buy stocks when their representatives get on the board and hold them until they exit.
In a regulatory filing made by Icahn, he claims Hertz is among victims most affected by the pandemic since restricted movement caused the company huge financial losses plunging it in a financial distress. He believes board’s decision to file for bankruptcy is the best which the company would have chosen.
Without a doubt Icahn made great loss, he did not reveal the exact figure but in the end of 2019 his stake at the company was valued at around $700 million. He largely believes the company has a bright future ahead.
“I intend to closely follow the Company’s reorganization and I look forward to assessing different opportunities to support Hertz in the future,” said Icahn.
Since the rain started beating Hertz, rumors had been circulating on what measures Icahn would take so it was just a matter of time before the investor reacted to the recent turn of events at the company.
Since outbreak of the pandemic which has crippled global economy, Hertz has laid off 10,000 employees and further predicted tougher times ahead to a point of doubting if it will be able to continue operations post the pandemic.