(Reuters) – Shares of activist investor Carl Icahn’s investment firm lost nearly a fifth of their value on Wednesday, a day after short seller Hindenburg Research launched a scathing attack on the company.
Icahn Enterprises LP’s shares were trading at $33.66, giving the company a market value of $11.9 billion. The stock has lost 34% since the end of last year.
Hindenburg accused the company of over-valuing its holdings and relying on a “Ponzi-like” structure to pay dividends. Icahn called the report “self-serving.”
Since its release on Tuesday, the report has wiped $7.5 billion off Icahn’s fortune, leaving him with a net worth of $10.8 billion, according to Forbes.
(Reporting by Niket Nishant in Bengaluru; Editing by Saumyadeb Chakrabarty)