Billionaire investor Carl Icahn has become an activist shareholder in Hertz Global Holdings, acquiring 8.5% of the car rental company to pressure management and the board about “underperformance,” according to an Aug. 20 regulatory filing with the Securities and Exchange Commission.
Over the past two months, several companies controlled by Icahn have acquired 38.8 million Hertz shares for about $470.5 million.
According to the filing, Icahn acquired Hertz shares “in the belief that they were undervalued.” He intends to discuss Hertz’s “shareholder value, accounting issues, operational failures and underperformance relative to its peers" and his “lack of confidence in management.”
Icahn may seek a board seat “if appropriate,” the filing said.
In a statement on Wednesday, Hertz said, “The Hertz board and leadership team value the views of all Hertz shareholders and welcome a constructive dialogue with them.”
Earlier this week, Hertz said in a regulatory filing that the company “expects to be well below the low end of its 2014 guidance due to operational challenges in the rental car and equipment segments as well as the associated costs related to the accounting review previously disclosed.”
Hertz is reviewing its internal financial record for 2011, 2012 and 2013. Because of the ongoing review, Hertz said it was unable to file its second-quarter financial report on time.