5/10, 5:06 PM (Source: TeleTrader)
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Icahn Enterprises facing inquiry by federal prosecutors

Icahn Enterprises LP said in a regulatory filing on Wednesday that the US Attorney's office for the Southern District of New York launched an investigation into the company but noted it does not expect the inquiry to have a "material impact on our business, financial condition, results of operations or cash flows."

The company stressed it was asked to provide "information relating to it and certain of its affiliates' corporate governance, capitalization, securities offerings, dividends, valuation, marketing materials, due diligence and other materials" and insisted it is cooperating with the probe. Icahn Enterprises added that no claims or allegations have been made either against the company or its chairman, Carl Icahn.

The investigation was launched after short-seller Hindenburg Research published a report claiming Icahn Enterprises inflated its value by at least 75%.

Icahn Enterprises shares plunged 19.19% to $30.6550 at 11:04 am ET following the news on the inquiry.

Baha Breaking News (BBN) / NP