Form 4: Carl Icahn Receives Payment-in-Kind Dividend from Icahn Enterprises L.P.

Carl Icahn, Chairman of the Board of Icahn Enterprises L.P., received 26,892,947 Depositary Units as a payment-in-kind dividend.

Summary

• Carl Icahn, as Chairman of the Board and a 10% owner of Icahn Enterprises L.P. (IEP), filed a Form 4.
• The filing reports a transaction on September 25, 2024, where Mr. Icahn received 26,892,947 Depositary Units as a payment-in-kind dividend.
• The dividend was received on 406,313,986 Depositary Units owned on the dividend record date.
• The price per Depositary Unit was $12.8775.
• Following the transaction, Mr. Icahn beneficially owns 433,206,933 Depositary Units indirectly through various entities.
• These entities include CCI Onshore LLC, Gascon Partners, High Coast Limited Partnership, Highcrest Investors LLC, and Thornwood Associates Limited Partnership.
• Mr. Icahn disclaims beneficial ownership of these units except to the extent of his pecuniary interest.
• Mr. Icahn may also be deemed to indirectly beneficially own 12,008 Depositary Units owned by his wife, Gail Golden, which are not included in the total reported.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine filing related to a dividend payment. The payment-in-kind dividend could be seen as slightly positive, but it depends on the company's overall financial health and strategy.

Positives

• The receipt of a payment-in-kind dividend suggests that Icahn Enterprises L.P. is distributing value to its unitholders.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to the market.

Comparison to Industry Standards

• Payment-in-kind dividends are sometimes used by companies to conserve cash, but they can dilute existing shareholders if not managed carefully.
• Other companies that have used similar strategies include Energy Transfer Partners and Linn Energy, although the specific circumstances and investor reactions can vary widely.

Stakeholder Impact

• The payment-in-kind dividend impacts shareholders by potentially diluting their ownership if new units are issued.
• It also affects Icahn Enterprises L.P.'s cash flow, as it conserves cash by distributing units instead of cash.

Key Dates