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Carl Icahn has finally come out of hiding since Hindenburg’s short report crushed Icahn Enterprises shares (down nearly 60%) last spring. In a new 13D filing, Icahn revealed a 10% stake in JetBlue and called the airline “undervalued,” a move that came one month after the DOJ blocked JetBlue’s planned acquisition of Spirit Airlines.
The move of course harkens back to Icahn’s last go-round in the airline industry, when he levered up and took Trans World Airlines private in 1988. If our readers can recall the days of Drexel Burnham and Guns n’ Roses, you might also remember Icahn’s bruising battle for TWA, whose bankruptcy was left on Icahn’s doorstep.
Speaking of octogenarian activists from Palm Beach, what is Nelson Peltz up to? David Faber of CNBC pointed out that Nelson Peltz’s Trian actually sold Disney stock in the fourth quarter, according to Trian’s 13F, a highly unusual move when you are trying to convince shareholders to vote for you. Faber suggested Peltz may be facing redemptions at Trian.
Elsewhere in activism and governance, many eyes are watching the Exxon situation. ExxonMobil was hit with a motion to dismiss its case against climate activists Follow This and Arjuna Capital, who argue that Exxon’s relentless litigation is “bullying” shareholders. The Deal’s Jean Haggerty suggests that Exxon’s suit may be “putting a G where an E could be,” attracting unwanted attention from ISS and Glass Lewis as the company dips into the corporate coffers to sue shareholders for unwanted proposals.
Have a great weekend,
GPP Team
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