Billionaire US investor Carl Icahn raised his stake in Hertz as the car rental group’s shares slumped after reporting disappointing quarterly profits and cutting its earnings outlook.
Funds affiliated with Icahn now own 28 million shares in Hertz, representing about a third of the group, according to a filing with US securities regulators.
That is up from 12.9 million, or 15.2%, as of a previous filing at the end of June, the Financial Times reported.
Hertz shares tumbled by 22.5% to $27.70 on the day after it disclosed third-quarter profits that came in far short of estimates.
The Florida-based group also reduced its outlook for full-year 2016 adjusted earnings before income taxes depreciation and amoritisation.
Third quarter EBITDA fell by $101 million to $329 million. President and chief executive John Tague said: “Our near-term financial performance continues to be uneven.”
Icahn bought shares on Tuesday at $22.64 and $25.02, compared with Monday’s closing price of $35.74.
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