Crown Holdings stock bounces sharply off 2-year low after Carl Icahn discloses large activist stake

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Shares of Crown Holdings Inc. CCK, +10.37% charged up 9.5% in midday trading Thursday, after Carl Icahn disclosed an 8.5% activist stake in the maker of packaging products and equipment for consumer goods, enough to make him the second-largest shareholder according to FactSet data. In a 13D filing with the Securities and Exchange Commission, Icahn said he believed the stock was “undervalued and represented an attractive investment opportunity.” Icahn beneficially owns 10.20 million Crown shares, which at current prices are worth $754.51 million; Crown’s market capitalization was $8.76 billion at current prices. Icahn, and funds he represents (reporting persons), said they plans to hold talks with Crown’s management and board of directors over a “variety of matters” that he believes will increase shareholder value, “including, operational, financial, corporate governance, management, capitalization, accounting, strategic direction, and share performance matters.” He has also held talks with current or prospective shareholders, industry analysts and others, including competitors and sources of credit. “The reporting persons may also take other steps seeking to bring about changes to increase shareholder value,” the 13D said. The stock, which closed Wednesday ($66.76) at the lowest price since July 2020, has tumbled 33.9% year to date, while the S&P 500 SPX, -1.06% has lost 21.4%.

This article was originally published by Marketwatch.com. Read the original article here.

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