(Reuters) -Shares of billionaire investor Carl Icahn’s Icahn Enterprises hit a nearly 21-year low after the firm said in a regulatory filing on Monday that it will sell up to $400 million depository units through an “at-the-market” offering program.
The stock dropped as much as 14.3% to $13.62 in afternoon trading, the lowest since November 2003.
It intends to use any net proceeds from the offering to fund potential acquisitions and for company purposes.
Icahn and his company last week settled charges with U.S. regulators that for years he failed to disclose pledging the majority of the firm’s securities for billions in personal margin loans. They together agreed to pay $2 million in penalties.
Icahn Enterprises is still at loggerheads with short-seller Hindenburg Research, which last year accused Icahn of running a “Ponzi-like” scheme to pay dividends by overvaluing its holdings and also raised questions about Icahn’s margin borrowing.
Jefferies is acting as sales agent by handling the share sale program for Icahn Enterprises, according to a separate statement.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru)
Source: finance.yahoo.com