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Bill Ackman jabs at old rival Carl Icahn after short-seller Hindenburg’s bombshell report

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Bill AckmanBill Ackman jabbed at his old rival Carl Icahn Tuesday after Hindenburg released a bombshell report attacking the billionaire investor’s business empire.

Mike Blake/ Reuters

  • Bill Ackman said Tuesday that there’s a “karmic quality” to Hindenburg Research’s attack on his old rival Carl Icahn.
  • The two activist investors feuded over a decade ago when Ackman made a $1 billion bet against Herbalife.
  • Hindenburg disclosed a short position against Icahn’s business empire in a bombshell report published Tuesday.

Bill Ackman took aim at his old rival Carl Icahn Tuesday after short seller Hindenburg Research attacked the latter’s business empire.

“There is a karmic quality to this short report that reinforces the notion of a circle of life and death,” Ackman tweeted. “As such, it is a must read.”

Ackman’s jibe came after Hindenburg disclosed a short position against Icahn Enterprises (IEP) that led to its shares plunging 20%, and Icahn’s own personal fortune falling by around $10 billion.

Hindenburg said that the Wall Street legend’s holding company used inflated asset valuations and “ponzi-like economic structures” to move money from new investors to older ones.

Icahn hit back against the short-seller, saying that he stood by IEP’s public disclosures.

“We believe the self-serving short seller report published by Hindenburg Research today was intended solely to generate profits on Hindenburg’s short position at the expense of IEP’s long-term unitholders,” he said in a statement

“We stand by our public disclosures and we believe that IEP’s performance will speak for itself over the long term as it always has,” Icahn added.

Ackman and Icahn feuded over a decade ago after Ackman made a $1 billion bet against Herbalife, which he alleged was a pyramid scheme. Icahn responded by taking a large stake in the company.

The billionaires’ battle over the multi-marketing firm eventually came to a head on live television in 2013.

In a CNBC interview, Icahn called Ackman a “liar” and told the investor: “I wouldn’t invest with you if you were the last man on Earth.”

“This is not a guy who keeps his word,” Ackman responded. “This is a guy who takes advantage of little people.”

Read more: The short seller that took on Asia’s richest man has a new target: Wall Street legend Carl Icahn

Read the original article on Business Insider
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