Investor

Billionaire investor Carl Icahn owns over 8% stake in Crown Holdings (CCK)


Enter Wall Street with StreetInsider Premium. Claim your one week free trial here.


Carl Icahn, founder and majority shareholder of Icahn Enterprises, has acquired an over 8% stake in Crown Holdings (NYSE: CCK), reports the Wall Street Journal. This makes Icahn Crown the second largest shareholder of Icahn Crown with a stake of over $700 million.

The activist investor, who recently made hundreds of millions of dollars betting that Elon Musk would buy Twitter at the original price, believes Crown should dump non-core units and buy back more shares, the report adds. Crown should either separate or sell its non-core assets, according to Icahn. In this way, the company could fully concentrate on its core beverage can business.

Crown shares are down nearly 40% year-to-date after last week’s plunge. The company has significantly reduced its full-year earnings outlook so it now expects to earn between $6.60 and $6.70 per share, down from the previous range of 8, 00 to $8.20.

CEO Timothy Donahue admitted on the earnings call that Crown had been caught off guard by “such a sudden and sharp decline” in demand for beverage cans.

“You never like to say, we’re caught off guard, but I think we really were,” Donahue said on last week’s conference call.

By Senad Karaahmetovic