‘Harming innocent civilians’, says Carl Icahn as he blasts Hindenburg Research for its report

Icahn Enterprises issued a statement refuting the accusations made by US short seller Hindenburg Research that accused the firm of inflating asset values that has led to an erosion of $6 billion off the company's market capitalization.

"Hindenburg Research, founded by Nathan Anderson, would be more aptly named Blitzkrieg Research given its tactics of wantonly destroying and harming innocent civilians," media reports quoted Chairman Carl Icahn as saying.

On  May 2, US short seller Hindenburg Research in its report claimed that the company is overpriced and said it found evidence of inflated valuations for some assets. 

Carl Icahn’s investment firm on Wednesday disclosed a federal inquiry into its practices.

While, Hindenburg Research on Thursday took a short position in Icahn Enterprises LP bonds and said the investment firm led by billionaire Carl Icahn has failed to address every issue it had raised.

The short seller on Thursday said Carl Icahn's investment firm Icahn Enterprises LP has failed to address every key issue that the research firm had raised.

"We are short units of Icahn enterprises and have initiated a short position in IEP bonds," the research report said.

Hindenburg's latest move comes a day after the company reported a surprise loss and disclosed it was contacted by U.S. prosecutors, though it was not clear if it was related to the short seller's allegation made last week.

The short seller said Icahn's latest disclosures raise critical new questions about margin loans and continued portfolio losses. 

Hindenburg, had criticized the investment firm of over-reporting its finances and accused it for relying on a "Ponzi-like" structure to pay dividends.

Icahn called the report ‘self-serving’ and vowed to take all appropriate steps to ‘fight back’.

Icahn owns about 84% of IEP. He has pledged about 202.6 million of the depositary units he owns for loans as of May 9, according to the media reports.

That was much higher than the 181.4 million units Icahn had pledged earlier.