Icahn Enterprises Shares Fall on U.S. Attorney’s Office Request
Shares of Icahn Enterprises LP (IEP) fell on Tuesday after the U.S. Attorney’s Office for the Southern District of New York requested documents related to the company’s business dealings.
The U.S. Attorney’s Office is seeking documents related to the company’s business dealings with the Trump administration, according to a statement from Icahn Enterprises. The company said it is cooperating with the request and that it is not the subject of the investigation.
Icahn Enterprises is a publicly traded holding company controlled by billionaire investor Carl Icahn. The company has investments in a variety of industries, including energy, automotive, gaming, and real estate.
Background of Icahn Enterprises
Icahn Enterprises was founded in 1987 by Carl Icahn, a billionaire investor and former chairman of the board of directors of the now-defunct Trump Entertainment Resorts. Icahn is known for his aggressive investment style and has been involved in a number of high-profile corporate takeovers.
Icahn Enterprises is a diversified holding company with investments in a variety of industries, including energy, automotive, gaming, and real estate. The company has a market capitalization of $14.5 billion and is listed on the Nasdaq Stock Market.
Icahn’s Relationship with the Trump Administration
Icahn has had a long and close relationship with the Trump administration. He served as a special advisor to President Donald Trump on regulatory reform from 2017 to 2018. During his tenure, Icahn was involved in a number of controversial decisions, including the appointment of Scott Pruitt as head of the Environmental Protection Agency.
Icahn also had a close relationship with former White House Chief Strategist Steve Bannon. Bannon was a key advisor to Trump during his 2016 presidential campaign and served as a senior advisor in the White House from 2017 to 2018.
U.S. Attorney’s Office Request
The U.S. Attorney’s Office for the Southern District of New York has requested documents related to Icahn Enterprises’ business dealings with the Trump administration. The company said it is cooperating with the request and that it is not the subject of the investigation.
The request comes as the U.S. Attorney’s Office is investigating a number of individuals and entities associated with the Trump administration. The investigation is focused on potential violations of federal law, including bribery, fraud, and money laundering.
Impact on Icahn Enterprises
The news of the U.S. Attorney’s Office request sent shares of Icahn Enterprises tumbling on Tuesday. The stock was down more than 5% in early trading.
The request is likely to put additional pressure on Icahn Enterprises, which has already been struggling with weak performance in its energy and automotive businesses. The company reported a net loss of $1.2 billion in the first quarter of 2023, its worst quarterly performance in more than a decade.
Outlook
It remains to be seen how the U.S. Attorney’s Office request will impact Icahn Enterprises. The company said it is cooperating with the request and that it is not the subject of the investigation.
In the meantime, Icahn Enterprises will continue to face challenges in its energy and automotive businesses. The company is also likely to face increased scrutiny from investors and regulators as the investigation into the Trump administration continues.