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]
  • The value-extracting CEO: How executive stock-based pay undermines investment in productive capabilities – papers.ssrn.com [PDF]
  • Mitigating the Davos dilemma: towards a global self-sustainability index – www.tandfonline.com [PDF]
  • Developments in Korean corporate governance: progress toward 21st century standards in an emerging economic powerhouse – heinonline.org [PDF]