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Tag: Icahn Enterprises LP

  • Hindenburg Analysis objectives $4.6 billion Kazakh brokerage for allegedly serving to Russian oligarchs evade sanctions

    Freedom Conserving CEO Timur Turlov in a Freedom place of business in Moscow, Russia, Oct. 10, 2019.

    Maxim Shemetov | Reuters

    Hindenburg Analysis, the distinguished brief dealer that is wager towards Jack Dorsey’s Block, Carl Icahn and electrical automobile startup Nikola, is now taking over a $4.6 billion on-line brokerage primarily based in Kazakhstan.

    Freedom Conserving Corp. was once based in Moscow in 2008, prior to later transferring to Kazakhstan, and indexed at the Nasdaq in 2019. After Russia invaded Ukraine early ultimate yr, U.S. sanctions necessarily severed ties between American and Russian banks and firms. Freedom offered off its Russian trade.

    However consistent with a record from Hindenburg on Tuesday, the ones ties stay tight.

    “We discovered that Freedom nonetheless does trade within the Russian marketplace, and that the corporate has overtly flouted sanctions at the side of anti-money laundering (AML) and know-your-customer (KYC) regulations,” the company wrote.

    Stocks of Freedom Conserving fell about 3.3% on Tuesday. Hindenburg’s record got here an afternoon after Freedom warned it was once notified by way of Nasdaq of noncompliance for failing to put up its quarterly profits record for the length ended June 30.

    In Freedom Conserving’s newest annual record, the corporate stated earnings for the yr ended March 31 was once $795.7 million, up neatly over 100% from two years previous.

    On the middle of the corporate’s enlargement, Hindenburg alleged, was once sanctions evasion, together with from the U.S. Treasury Division’s Place of job of International Belongings Keep watch over, or OFAC. Hindenburg highlighted Freedom’s acknowledgment to the Securities and Alternate Fee that it “equipped brokerage services and products to sure folks and entities who’re matter to sanctions imposed by way of OFAC, the Eu Union or the UK.”

    In step with Hindenburg, the issues cross a lot deeper.

    The company stated it realized thru interviews with a couple of former workers that shopper cash ran from Freedom’s places of work in Russia and Kazakhstan thru a “Belizean entity privately owned by way of Freedom’s CEO.” SEC filings display that entity represented 60% of Freedom’s charge and fee source of revenue for the yr ended March 31.

    Freedom CEO Timur Turlov is likely one of the wealthiest males in Kazakhstan, in spite of being sanctioned by way of Ukraine for his monetary ties to Russia.

    One former senior govt imagined to Hindenburg that Russian cash laundering was once rampant. Relating to compliance requirements, Hindenburg stated the ex-employee described them as “actually not anything.”

    “Simply deliver your cash. There is not any supply of source of revenue, supply of price range. There is not any KYC. Not anything,” the company stated, quoting the previous worker. “The most efficient phase is that is violating virtually each and every nation’s anti-money and anti-terrorist financing rules. They may deliver money. I have individually noticed suitcases with $2.5 million introduced in money by way of a shopper.”

    Freedom Conserving CEO Timur Turlov speaks all over a press interview in Moscow, Russia, Oct. 10, 2019.

    Maxim Shemetov | Reuters

    The Belize entity, FFIN Belize, was once established simply 4 months after the U.S. sanctioned Russia in 2014. The ones sanctions, triggered by way of Russia’s invasion of Crimea, created an issue for Freedom’s trade, Hindenburg alleged.

    Freedom’s SEC filings from 2014 say FFIN Belize was once designed to “supply more uncomplicated get entry to to the U.S. securities markets than a Russian or Kazakhstan corporate may supply.”

    A Freedom spokesperson, running for an out of doors company within the U.S., informed CNBC that Hindenburg’s allegations are “with out benefit.”

    “Freedom Conserving and its subsidiaries proceed to offer all required disclosures to regulators and buyers, who can overview our just lately filed shape 10-Ok and … audited monetary statements on our site,” the consultant stated.

    Freedom stocks were on a tear the previous couple of years, mountain climbing greater than eightfold for the reason that finish of 2018, in large part undeterred by way of international conflicts. The corporate reported web source of revenue of $205.6 million in fiscal 2023, with about 79% coming from operations in Kazakhstan.

    Hindenburg, based in 2018, is understood for taking brief positions and publishing detailed experiences explaining the common sense at the back of its bets. The company has wagered towards Block, previously Sq.; Icahn Enterprises; Gautam Adani’s Adani Crew; and Trevor Milton’s Nikola.

    WATCH: Hindenburg Analysis is going after Carl Icahn

  • Shares making the largest premarket strikes: Advance Auto Portions, Icahn Enterprises, Meta, Fisker and extra

    Those are the shares posting the biggest strikes within the premarket.

  • Hindenburg Analysis is going after Carl Icahn in newest marketing campaign for market-moving quick vendor

    Carl Icahn talking at Handing over Alpha in New York on Sept. 13, 2016.

    David A. Grogan | CNBC

    Notable quick vendor Hindenburg Analysis goes after famed activist investor Carl Icahn.

    The Nathan Anderson-led company took a brief place in opposition to Icahn Enterprises, alleging “inflated” asset valuations, amongst different causes, for what it says is an strangely prime internet asset price top class in stocks of the publicly traded preserving corporate.

    comparable making an investment information

    “General, we expect Icahn, a legend of Wall Boulevard, has made a vintage mistake of taking over an excessive amount of leverage within the face of sustained losses: a mixture that infrequently ends smartly,” Hindenburg Analysis stated in a notice launched Tuesday.

    The stocks tumbled greater than 20% in Tuesday’s buying and selling.

    Icahn, essentially the most widely known company raider in historical past, made his title after pulling off a adverse takeover of Trans Global Airways within the Eighties, stripping the corporate of its property. Maximum just lately, the billionaire investor has engaged in activist making an investment in McDonald’s and biotech company Illumina.

    Headquartered in Sunny Isles Seashore, Florida, Icahn Enterprises is a preserving corporate that comes to in a myriad of companies together with power, automobile, meals packaging, metals and actual property.

    The conglomerate will pay a fifteen.9% dividend, in keeping with FactSet. Hindenburg stated it believes the prime dividend yield is “unsupported” by means of the corporate’s money glide and funding efficiency.

    Icahn spoke back in a commentary announcing the Hindenburg file used to be supposed “only” to earn a living on its quick place on the expense of Icahn Enterprises’ long-term stakeholders.

    “We stand by means of our public disclosures and we imagine that IEP’s efficiency will talk for itself over the long run because it at all times has,” Icahn stated. “We proceed to imagine that activism is the most productive paradigm for making an investment and my activist investments over the past 25 years have smartly proved this out.”

    Stocks of Icahn Enterprises are down about 23% at the 12 months.

  • Illumina unveils plans to chop prices because it faces shrinking margins

    A development at the campus on the international headquarters of Illumina is proven in San Diego, California, September 1, 2021.

    Mike Blake | Reuters

    Illumina on Tuesday unveiled plans to chop prices in a bid to beef up the DNA sequencing corporate’s shrinking margins.

    The plans purpose to cut back Illumina’s annualized run fee bills by means of greater than $100 million beginning later this yr, consistent with the corporate’s first-quarter profits free up.

    The corporate reported gross margins of 60.3% for the length, down from 66.6% all over the year-earlier length.

    “Those value financial savings will boost up growth towards upper margins in addition to liberate capital to extend funding in high-growth spaces,” Illumina mentioned within the free up.

    Amongst Illumina’s plans is to make use of its NovaSeq X sequencing device to boost up genomic discoveries. The device, which introduced in September 2022, sequences DNA two times as rapid and thrice as as it should be as earlier Illumina merchandise.

    The San Diego-based corporate mentioned it additionally plans to avoid wasting by means of “enabling actions” in more cost effective spaces all over the world. Illumina didn’t divulge any specifics about the ones actions.

    The corporate is struggling with complaint and a falling marketplace cap within the wake of its arguable $7.1 billion acquisition of Grail, a most cancers check developer.

    Illumina’s marketplace worth has fallen to more or less $34.5 billion from round $75 billion in August 2021, the month it closed its acquisition of Grail. 

    Antitrust regulators have time and again driven again on that deal. 

    The Federal Business Fee previous this month ordered Illumina to divest the purchase, announcing it might stifle festival and innovation. 

    Closing yr, the Eu Fee, the chief frame of the Eu Union, blocked the deal over identical considerations.   

    Illumina is interesting each orders and expects ultimate choices in overdue 2023 or early 2024. 

    The Grail deal could also be the focal point of a proxy struggle between activist investor Carl Icahn and Illumina. They’ve been buying and selling jabs for greater than a month.

    Icahn, who owns a 1.4% stake within the corporate, is looking for seats on Illumina’s board of administrators and pushing it to unwind the Grail deal. He’s additionally calling for Illumina to oust its CEO Francis deSouza “instantly.” 

    The corporate is urging shareholders to reject Icahn’s 3 board nominees all over its annual shareholder assembly on Might 25. 

    Illumina has time and again claimed that Grail has “super long-term worth advent possible.” 

    Grail claims to supply the one commercially to be had early screening check that may hit upon greater than 50 forms of cancers via a unmarried blood draw. 

    The most cancers check generated round $55 million in income in 2022 and is anticipated to rake in as much as $110 million this yr, Illumina mentioned.

  • Carl Icahn blasts Illumina for almost doubling CEO’s pay in spite of steep drop in marketplace price

    Carl Icahn talking at Turning in Alpha in New York on Sept. 13, 2016.

    David A. Grogan | CNBC

    Carl Icahn blasted Illumina for almost doubling its CEO’s pay remaining yr in spite of a dramatic drop within the biotech corporate’s marketplace price since final a arguable deal. 

    “I might in finding it comical, if it wasn’t so reprehensible that ILMN’s proportion value is down 63% because of CEO Francis deSouza making such an absurd and questionable acquire,” Icahn mentioned in a observation to CNBC.

    “And what’s in point of fact humorous is the concept that it’s exhausting to search out just right CEOs on this space,” the activist investor added. “I suppose it might be exhausting to search out any person who may just lose $50 billion of shareholder price in an issue of months but nonetheless receives a commission 87% extra for a grand overall of $26.8 million in 2022.”

    Illumina didn’t straight away reply to a request for remark.

    DeSouza stepped in as CEO in 2016 after serving because the DNA sequencing corporate’s president for nearly 3 years. He used to be awarded just about $26.8 million in overall pay remaining yr, just about double the $14.3 million he won in 2021, in step with a initial proxy observation Illumina filed Thursday. 

    A part of deSouza’s pay bump is a unique grant of inventory choices value $12.5 million, which Illumina known as a “significant retention incentive in a extremely aggressive skill surroundings.” 

    DeSouza’s pay building up follows a rocky 18 months for San Diego-based Illumina. The corporate’s marketplace price has fallen to more or less $35 billion from about $75 billion in August 2021, the month it closed its acquisition of most cancers check developer Grail. 

    Rafael Henrique | Lightrocket | Getty Pictures

    The $7.1 billion Grail deal is the point of interest of a proxy struggle between Icahn and Illumina, who’ve been buying and selling jabs for almost a month. 

    Icahn, who owns a 1.4% stake in Illumina, is looking for seats at the corporate’s board. He’s additionally looking to push Illumina to unwind the Grail acquisition, which he has known as “disastrous” and “a brand new low in company governance.” 

    He has again and again slammed Illumina’s board and control staff, pronouncing previous this week that the corporate must deliver again former CEO Jay Flatley to “repair the location.” 

    Illumina on Thursday prompt shareholders to reject Icahn’s 3 nominees to its board of administrators and persisted to protect its control staff’s determination to obtain Grail. 

    The corporate additionally claimed Icahn had extra favorable issues to mention about its present CEO earlier than launching the proxy struggle. 

    Icahn advised Illumina remaining month that he supposed to make board nominations in spite of believing deSouza “had carried out a just right activity” managing the corporate, Illumina mentioned. 

    The activist investor additionally mentioned he used to be “supportive” of deSouza’s movements as CEO all the way through some other assembly previous this month, however famous he would no longer repeat the ones feedback publicly, in step with Illumina. 

    A part of Icahn’s opposition to the Grail acquisition stems from Illumina’s determination to near the deal with out approval from antitrust regulators. The corporate prevailed over the U.S. Federal Industry Fee’s opposition to the deal in September, however remains to be preventing for approval from Ecu regulators. 

    The EU’s government frame, the Ecu Fee, remaining yr blocked Illumina’s acquisition of Grail over issues it might stifle innovation and harm client selection. The fee additionally unveiled main points of a deliberate order that will power Illumina to unwind the deal.

    Illumina mentioned previous this month that Grail has “super long-term price introduction possible.” 

    Grail says it provides the one commercially to be had early screening check that may discover greater than 50 forms of cancers thru a unmarried blood draw. The check generated $55 million in earnings in 2022 and is slated to rake in as much as $110 million this yr, in step with Illumina.

  • Cramer’s lighting fixtures spherical: I love Danaher over Philips

    Novo Nordisk A/S: “Rather then appreciation, I will be able to no longer inform you a explanation why to ring the sign in.”

    Koninklijke Philips NV: “That is simply no longer a well-enough run corporate. We personal Danaher for the Charitable Accept as true with, and that’s the reason the best-run corporate within the business.”

    Icahn Enterprises LP: “I do not actually know what they personal, so it is roughly like a black field. … Subsequently, I’m really not being rigorous. So, I will be able to no longer counsel Icahn Enterprises.”

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  • Carl Icahn says he nonetheless thinks we’re in a undergo marketplace in spite of Thursday’s rally

    Famed investor Carl Icahn stated Thursday’s aid rally did not alternate his adverse view available on the market, and he believes a recession continues to be at the horizon.

    “We stay our portfolio hedged,” Icahn stated on CNBC’s “Last Bell Extra time” Thursday. “I’m nonetheless very, relatively bearish on what will occur. A rally like that is in fact very dramatic to mention the least… however I nonetheless suppose we’re in a undergo marketplace.”

    Shares staged an enormous comeback after October’s studying of shopper costs fueled bets that inflation has peaked. The Dow Jones Commercial Moderate jumped 1,200 issues for its greatest one-day acquire since Would possibly 2020. The S&P 500 jumped 5.5% in its greatest rally since April 2020.

    Giant bear-market rallies happen frequently on account of the huge brief pastime constructed up within the downturn, Icahn stated. Whilst the inflation record confirmed some indicators of easing, the founder and chairman of Icahn Enterprises believes value pressures are decal than maximum suppose on account of salary will increase.

    “Inflation isn’t going away, now not within the close to time period,” Icahn stated. “We’re going to have extra salary inflation. A large number of folks do not wish to paintings.”

    The mix of upper rates of interest and an inverted yield curve led Icahn to consider {that a} recession is inevitable, he stated.

    The patron value index greater 0.4% for the month and seven.7% from a yr in the past, in comparison to respective estimates from Dow Jones had been for rises of 0.6% and seven.9%. The Federal Reserve has been deploying a sequence of competitive rate of interest hikes with the intention to deliver down inflation operating round its easiest ranges because the early Eighties.

    “I feel the Fed did what they needed to do,” Icahn stated. “I feel they got here overdue to the sport to boost rates of interest. However I do not believe the inflation is over….I lived during the 70s. It took years and years and years to get it over with. You’ll be able to’t wave a magic wand to get inflation over with.”

  • Cramer’s lightning spherical: GXO Logistics is a purchase

    Axsome Therapeutics Inc: “They are seeking to treatment ache. … We all know who did not do it neatly, and we are not even going to say it.”

    nCino Inc: “Up to I really like nCino, I really like its product, it is shedding cash. So, we will’t purchase it.”

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  • McDonald’s shareholders to vote on proxy combat with Carl Icahn over animal welfare practices

    Signage outdoor a McDonald’s Corp. rapid meals eating place in Louisville, Kentucky, U.S., on Friday, Oct. 22, 2021.

    Luke Sharrett | Bloomberg | Getty Photographs

    McDonald’s shareholders assembly on Thursday morning will mark the climax of a proxy combat waged via activist investor Carl Icahn, who’s pushing for 2 seats at the fast-food large’s board amid a fight over its animal welfare practices.

    Tallies of early votes display McDonald’s will most probably triumph, the Wall Side road Magazine reported Tuesday. Shareholders can stay balloting till the assembly concludes, however folks conversant in the topic instructed the newspaper the ones ballots are not going to modify the outcome.

    Icahn has publicly criticized McDonald’s for failing to satisfy its authentic time limit for getting rid of gestation crates for pregnant pigs, a convention animal rights activists say is merciless. He has additionally argued that the corporate was once meant to prohibit the usage of crates completely however has since modified the scope of its dedication.

    For its section, the Chicago-based corporate has blamed the Covid-19 pandemic and African swine fever outbreaks for pushing again its authentic time limit of 2022 set a decade in the past. By means of the tip of this 12 months, McDonald’s now expects 85% to 90% of its U.S. red meat provide to return from pigs that are not stored in gestation crates if they are showed to be pregnant. McDonald’s has additionally mentioned that completely getting rid of the usage of the crates would elevate its prices and lead to consumers paying extra.

    In his push at the remedy of pigs, Icahn has additionally taken swipes at McDonald’s broader commitments to take on environmental, social and company governance problems.

    “We consider there’s a connection between animal welfare problems and insufficient governance, and due to this fact, different similar ESG dangers that the Corporate isn’t adequately getting to,” he wrote in his letter to fellow McDonald’s shareholders.

    Icahn nominated Leslie Samuelrich, a sustainability-focused investor, and Maisie Ganzler, an government at Bon Appétit Control, to switch present board individuals Sheila Penrose and Richard Lenny. In general, McDonald’s has 12 seats on its board.

    “Two seats on a big board like McDonald’s isn’t massive, however I feel it is the message that it will ship to others within the trade that they wish to do extra to verify their board has illustration from mavens on this space, relatively than simply giving any person a identify that oversees ESG,” Barclays analyst Jeffrey Bernstein mentioned.

    As a result of McDonald’s measurement and the huge volumes of substances it makes use of, adjustments to the corporate’s provide chain have a tendency to have a ripple impact during the trade. McDonald’s says its McRib sandwiches and the bacon for its burgers and breakfast sandwiches account for approximately 1% of U.S. red meat provide.

    Icahn is waging a an identical proxy combat at Kroger, the most important U.S. grocery store chain operator within the U.S. Kroger’s annual assembly is scheduled for June 23.

    Securing votes

    Icahn most effective owns about 200 McDonald’s stocks, a moderately tiny stake that does not give him a lot sway in balloting.

    “200 stocks is up to now clear of having any affect on an organization,” mentioned Bruce Kogut, a professor of company governance and ethics at Columbia Industry College. “My bet is that it is about exposure, and he now cares a couple of sustainable setting or ESG focused on, and he is pronouncing himself as an activist in that house.”

    In lobbying for extra votes, Icahn referred to as out huge Wall Side road corporations for “hypocrisy” and mentioned they are capitalizing on ESG making an investment for the earnings with out supporting “tangible societal growth.” McDonald’s best 3 shareholders are The Forefront Crew, the asset control arm of State Side road, and BlackRock, in line with FactSet.

    Icahn has additionally fallen in need of profitable excessive two proxy advisory corporations, Institutional Shareholder Services and products and Glass Lewis, which make suggestions to 1000’s of price range on the best way to vote in shareholder conferences.

    ISS most effective presented “cautionary enhance” to Icahn’s nominees, announcing that shareholders must imagine whether or not the present board is concentrated sufficient on ESG problems. However the company famous the proxy combat is notable as a result of Icahn has targeted it on problems comparable to animal welfare, protein diversification and pay hole, relatively than taking a look at operational problems.

    “It’ll neatly be remembered as the primary true ‘ESG contest,’” ISS mentioned.

    Glass Lewis, in contrast, instructed towards balloting for the brand new board individuals. It mentioned that Icahn’s push to reinforce animal welfare prerequisites is a “worthy and noble,” however that it takes a “simplistic” view of the problem. And it famous the efforts do not give substantive regard to the corporate’s financials.

    The Humane Society of the US has put forth a shareholder proposal echoing Icahn’s criticisms, asking the corporate to verify that it’s going to achieve its earlier purpose of getting rid of the confinement of gestating pigs via 2022. If the corporate can not achieve that focus on, it is soliciting for extra disclosure about its red meat provide chain. Icahn has teamed up with the group previously, and his daughter, Michelle Icahn Nevin, used to paintings with the crowd.

    Such shareholder proposals are nonbinding however can ship a message to company forums about public enhance for corporate practices. McDonald’s is dealing with six different shareholder proposals addressing problems together with plastics use, antibiotics and lobbying actions.

  • Carl Icahn calls out Wall Boulevard ‘hypocrisy’ over ESG making an investment in letter to McDonald’s shareholders

    Carl Icahn talking at Turning in Alpha in New York on Sept. 13, 2016.

    David A. Grogan | CNBC

    Carl Icahn launched his letter to McDonald’s shareholders on Thursday, calling out reimbursement a few of the corporate’s best ranks and Wall Boulevard corporations for his or her ESG making an investment insurance policies.

    It is the most recent construction in Icahn’s animal-welfare combat with the fast-food chain over the remedy of pregnant pigs. The billionaire company raider is pushing so as to add two board seats with nominees who percentage his trust that McDonald’s will have to require all its U.S. providers transfer to “crate-free” beef. Icahn is waging a an identical combat with Kroger, as neatly.

    Icahn started his letter through difficult asset control corporations for what he known as “the largest hypocrisy of our time.” He stated massive Wall Boulevard corporations, banks and attorneys are capitalizing on atmosphere, social and company governance making an investment for the earnings with out supporting “tangible societal growth.”

    “The truth is if the ESG motion is to be greater than a advertising idea and fundraising device, the large asset managers who’re amongst McDonald’s’ biggest house owners should again up their phrases with movements,” he wrote.

    McDonald’s best 3 shareholders are The Forefront Crew, the asset control arm of State Boulevard, and BlackRock, in keeping with FactSet.

    Icahn also known as reimbursement for McDonald’s control “unconscionable” and stated the board used to be condoning more than one kinds of injustice.

    “Possibly if the Corporate’s executives carried out the similar effort to getting their providers to turn into utterly gestation crate-free as they do to acquiring wealthy reimbursement programs, we might now not be having this election contest,” Icahn wrote.

    McDonald’s later Thursday replied to Ichan’s letter bringing up what it known as “hypocrisy” in his personal marketing campaign and pronouncing it “simplest assets roughly 1% of U.S. beef manufacturing.”

    “In spite of McDonald’s growth on our dedication to supply from manufacturers who don’t use gestational crates for pregnant sows, Mr. Icahn has requested for brand new commitments,” the corporate stated in a written reaction. “What Mr. Icahn is not easy from McDonald’s and different firms is totally unfeasible.”

    McDonald’s says its U.S. beef provide will likely be “crate unfastened” through the tip of 2024, marking a two-year prolong to a 2022 cut-off date it set a decade in the past. The corporate has blamed the Covid-19 pandemic and African Swine Fever outbreak for the postponement.

    Icahn stated in his letter that McDonald’s will have to have prioritized the problem previous so it will persist with its preliminary pledge.

    The burger chain expects that through the tip of this 12 months, 85% to 90% of its beef will come from sows now not housed in gestation crates all the way through being pregnant.

    McDonald’s stated in a regulatory submitting that it anticipated to spend about $16 million within the proxy combat. Icahn puzzled even the corporate’s determination to spend that a lot cash.

    “What number of pigs could be spared the torture of gestation crates if the $16 million had been spent on that, as an alternative of on 3rd events retained through McDonald’s to solicit your votes ‘for’ re-electing two of 12 Board nominees who’ve presided over a multi-year failure to succeed in the Corporate’s mentioned targets in selling animal welfare in McDonald’s’ provide chain?” he wrote.

    McDonald’s shareholders will vote on whether or not to elect Icahn’s nominees, Leslie Samuelrich and Maisie Ganzler, all the way through the corporate’s annual assembly on Would possibly 26.

    Stocks of McDonald’s are up 10% during the last twelve months, giving the corporate a marketplace worth of kind of $190 billion.