American activist investor Carl Icahn reportedly acquired between 30 and 40 million shares in Hertz Global Holdings Inc. Icahn's stake-building was the reason the car rental company bolstered its takeover defenses. Financial terms of the deal were undisclosed.
Reuters, citing an earlier report by CNBC, said that part of Icahn's stake took the form of derivatives rather than common shares. Were it all common stock, the activist investor's stake would be nearly enough to make him Hertz's largest shareholder, CNBC said in a separate report.
The report, citing sources, said that Icahn is the target of the poison pill Hertz put into place on Monday. According to Reuters, Hertz had adopted a shareholder rights plan early this week after observing unusual and substantial activity in its shares.
Investopedia defines a shareholder rights plan or poison pill as a strategy used by corporations to discourage hostile takeovers.
In addition to Icahn, CNBC sources said on Tuesday that his fellow activist investor Dan Loeb had also taken a stake in the company. Sources also told CNBC that Icahn protege Keith Meister of activist hedge fund Corvex Capital has added to his holding in Hertz.
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