BROWSE

Icahn Lift

What is 'Icahn Lift'

The name given to the rise in stock price that occurs when Carl Icahn begins to purchase shares in a company. The Icahn lift occurs because of Mr. Icahn's reputation for creating value for the shareholders of the companies in which he takes an interest.

Explaining 'Icahn Lift'

Carl Icahn is most famous for his work as an activist shareholder, but has also been referred to as a corporate raider. He purchases shares in a company that he believes is undervalued and then creates a plan to fix the problems. This usually involves spinning off profitable segments, changing management, cutting costs and buying back stock.


Further Reading


Exploring women's decisions about childbearing after the lifting of the one-child policy
www.tandfonline.com [PDF]
… However, John can certainly help Jim in lifting the object if the two combine their strengths and lift together the object … Jane, in her turn, cannot lift more than 40kg … Argumentative Interaction in Corporate Deliberations: The case of Carl Icahn and Motorola …

The value-extracting CEO: How executive stock-based pay undermines investment in productive capabilitiesThe value-extracting CEO: How executive stock-based pay undermines investment in productive capabilities
papers.ssrn.com [PDF]
… However, John can certainly help Jim in lifting the object if the two combine their strengths and lift together the object … Jane, in her turn, cannot lift more than 40kg … Argumentative Interaction in Corporate Deliberations: The case of Carl Icahn and Motorola …

Mitigating the Davos dilemma: towards a global self-sustainability indexMitigating the Davos dilemma: towards a global self-sustainability index
www.tandfonline.com [PDF]
… However, John can certainly help Jim in lifting the object if the two combine their strengths and lift together the object … Jane, in her turn, cannot lift more than 40kg … Argumentative Interaction in Corporate Deliberations: The case of Carl Icahn and Motorola …

Developments in Korean corporate governance: progress toward 21st century standards in an emerging economic powerhouseDevelopments in Korean corporate governance: progress toward 21st century standards in an emerging economic powerhouse
heinonline.org [PDF]
… However, John can certainly help Jim in lifting the object if the two combine their strengths and lift together the object … Jane, in her turn, cannot lift more than 40kg … Argumentative Interaction in Corporate Deliberations: The case of Carl Icahn and Motorola …



Q&A About Icahn Lift


What does Mr. Icahn do after purchasing shares of a company?

After purchasing shares of a company, Mr. Icahn creates plans for fixing problems with the hope of increasing value for shareholders.

Who are some investors that used corporate raiding tactics?

Some investors who used corporate raiding tactics include Carl Icahn, T. Boone Pickens, Nelson Peltz, Kirk Kerkorian, Harold Clark Simmons and Asher Edelman.

What were some of the legal countermeasures adopted by corporations during this time period?

The most common legal countermeasure was poison pills which made it more difficult for hostile bidders to accumulate shares without triggering an expensive buyout offer for all shareholders. Other measures included golden parachutes which gave executives large payouts if they were replaced after a takeover attempt; debt levels on balance sheets increased as companies took out loans from banks or bondholders so that they could make lucrative takeover offers for their own stock.

What is Icahn Lift?

Icahn Lift is a business term.

Who is Carl Icahn?

Carl Icahn is most famous for his work as an activist shareholder, but has also been referred to as a corporate raider. He purchases shares in a company that he believes is undervalued and then creates a plan to fix the problems. This usually involves spinning off profitable segments, changing management, cutting costs and buying back stock.

How does corporate raiding work?

Corporate raiding involves buying a large stake in a corporation and then using shareholder voting rights to require the company to undertake novel measures designed to increase the share value, generally in opposition to the desires and practices of the corporation's current management.

When did these types of activities become illegal?

These activities became illegal when Congress passed legislation such as the Williams Act (1957), followed by amendments in 198s and 199s that prohibited certain forms of insider trading and required public disclosure of beneficial ownership when securities are sold short or purchased with borrowed money.

What are some examples of actions taken by Mr. Icahn?

Some examples include spinning off profitable segments, changing management, cutting costs and buying back stock from investors who want out of their positions at higher prices than they paid initially..

How does Mr. Icahn create value for shareholders?

By creating plans for fixing problems with hopes of increasing value for shareholders.

What is the name given to the rise in stock price that occurs when Carl Icahn begins to purchase shares in a company?

The name given to the rise in stock price that occurs when Carl Icahn begins to purchase shares in a company is called an "Icahn lift."