This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Carl Icahn Takes Stake in Hertz Amid Accounting Woes

Stocks in this article: HTZ

NEW YORK (TheStreet) - Activist investor Carl Icahn has taken an over 8% stake in Hertz Global Holdings (HTZ) and may seek representation on the rental car company's board of directors as it works to resolve accounting restatements, missed earnings and a delayed spin-off of its equipment rental business. 

In a 13D filing with the Securities and Exchange Commission, Icahn said he has accumulated an 8.48% stake in Hertz and intends to engage the company about its accounting issues, operational failures and overall underperformance relative to peers. The activist investor may also seek representation on Hertz's board of directors, if appropriate, he said. A SEC filing shows that Icahn acquired over 6.5 million Hertz shares on Wednesday.

On Tuesday evening, the company disclosed it would not be able to meet the low-end of its earnings guidance and had decided to scrap guidance outright, going forward. Hertz also disclosed continued delays to its accounting restatements and the company's planned spinoff of its equipment rental business. Additionally, two directors resigned from the company's board on Tuesday.

While a significant piece of Icahn's Hertz stake was acquired on Wednesday, the activist has been steadily buying shares in the car rental chain since late June, amid the company's accounting woes. Icahn acquired his 8.48% stake for a total price of $470.5 million.

Icahn said on Wednesday he believes the company's shares are undervalued amid its accounting woes and poor operational performance. Fir Tree Management, a Hertz shareholder, said on Wednesday it would like the company's CEO Mark Firssora replaced.

Hertz shares closed down over 3% in Wednesday trading reversing heavy losses after Icahn's stake was disclosed. Year-to-date, shares have gained nearly 6%.

Read More: Family Dollar's Lost Way Leads to Peltz and Icahn

-- Written by Antoine Gara in New York

Follow @AntoineGara

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs