Investment Loss Hits Icahn Enterprises 2q Income


Icahn Enterprises LP, the investing vehicle for billionaire Carl Icahn, said Wednesday that its net income fell in the second quarter as it took a $228 million loss on investments.

The company’s net income shrank to $54 million, or 48 cents per share, from $257 million, or $2.37 per share, in last year’s quarter. In that period, Icahn Enterprises posted a $299 million gain on investments and got a $101 million boost from a tax benefit.

Revenue rose 9 percent, to $4.62 billion from $4.23 billion.

Icahn Enterprises said it is raising its quarterly dividend to $1.25 from $1. Its next dividend is payable Oct. 9 to shareholders of record as of Aug. 16.

Icahn, who is known for pushing the management of companies in which he invests for change, owns stakes in a variety of companies including computer maker Dell Inc., drugmaker Forest Laboratories Inc., oil rig owner Transocean Ltd., dietary supplement maker Herbalife Ltd., oil and gas producer Chesapeake Energy Corp. and Netflix Inc.

He has been fighting to stop Dell CEO Michael Dell and investment firm Silver Lake Partners from taking the computer maker private. Dell and Silver Lake are currently proposing to buy the company for $24.6 billion, or $13.75 per share, while paying a special dividend of 13 cents to investors. They say Dell needs to diversify its business and will be in better shape as a privately owned company. Shareholders are scheduled to vote on the offer on Sept. 12.

Icahn, investment firm Southeastern Asset Management, and their supporters want to oust Michael Dell as CEO and replace the company’s entire board to pursue different alternatives. Icahn says he has put together a deal worth at least $15.50 per share.

Last week Icahn bought more shares of Dell, increasing his stake to almost 9 percent.