Billionaire Carl Icahn Pours $84,700,000 Into Low-Cap Stock, Triggering Major Breakout and Effort To Avoid Corporate Takeover
Billionaire Carl Icahn's hedge fund has acquired a 15% stake in Monro (MNRO), investing approximately $84.7 million. This move triggered a significant stock price increase, with shares rising nearly 20% to around $17.98. In response, Monro has adopted a shareholder rights plan to fend off potential takeovers. Icahn's investment comes amid a challenging period for his fund, which has faced losses due to unsuccessful short-selling strategies. Icahn Enterprises' shares are currently trading at $9.06, down 94% from their peak in 2013.
Billionaire Carl Icahn’s private hedge fund has taken a massive position in a low-cap stock.
Icahn Enterprises just reported nearly a 15% stake in the automotive repair chain Monro (MNRO),triggering a major breakout.
Icahn Enterprises’ 13D filing shows the hedge fund has scooped up 4,439,914 shares for approximately $84.7 million.
Monro shares closed the first trading day in November at $15.05 and soared to a high of $18.05, a gain of nearly 20%.
Shares are trading for around $17.98 at time of writing, with the company’s market cap standing at $529 million.
In response to Icahn’s massive stock buy, Monro has implemented a shareholder rights plan to protect against unsolicited takeovers, which aims to prevent any party from gaining control of Monro without offering appropriate compensation to all shareholders.
Monro operates more than 1,100 auto repair shops and tire dealers in 32 states.
Says Monro,
In August, Institutional Investor reported Icahn’s private hedge fund has been on a six-year-long red streak due to unsuccessful short-selling.
In a filing, the company said that “market hedges” were mostly to blame for the losses, which overshadowed gains in otherwise viable long positions.
Icahn’s investment portfolio is a component of Icahn Enterprises (IEP), which is made up of six other segments, including energy, automotive, food packaging, real estate, home fashion and pharma.
As of Tuesday’s close, shares of Icahn Enterprises were trading at $9.06, down nearly 94% from its all-time high of $149, last seen in 2013.
