Carl Icahn and his affiliate firms disclosed 38,800,000 shares or 8.48% stake in Hertz Global Holdings, Inc. (NYSE:HTZ) based on his latest 13D filing with the Securities and Exchange Commission (SEC).

Carl Icahn
Carl Icahn image via FBN

The filing showed that Carl Icahn and his affiliate firms acquired their stake in Hertz Global Holdings, Inc. (NYSE:HTZ) for an aggregate cost of approximately $1.09 billion including commissions and premiums for options to buy shares. The investors used their general working capital to purchase their stake in the company, and they obtained part of the acquisition price through margin borrowing.

Carl Icahn and affiliates exercised call options

Based on the filing, Icahn and his affiliates exercised over the counter market, American-style call options for a total of 35,978,553 shares at an exercise price of $17.50 set to expire on September 17, 2016.

On September 9, High River Limited Partnership purchased 7,195,713 shares (call options) in the over the counter market for $10.99 per share. Icahn Partners acquired 17,097,581 shares (call options), and Icahn Partners Master Fund purchased 11,685,258 shares (call options) for $10.99 per share.

The filing indicated that Icahn and his affiliates sold in over the counter market, European-style put options referencing a total of 35,978,553 shares, which would expire earlier on June 17, 2016. Following their exercise of the call options, all the put options were terminated.

Voting and dispositive power

High River Limited Partnership has sole voting power and sole dispositive power with regard to the 7,760,002 shares. Icahn, Hopper Investments LLC and Barberry Corp, each has a share voting and dispositive power to those shares.

Icahn Partners Master Fund has sole voting power and sole dispositive power with regard to the 12,602,500 shares. Icahn Offshore, Icahn Capital, IPH, Icahn Enterprises Holdings, Icahn Enterprises, Beckton and Icahn, each has shared voting and dispositive power on those shares.

Icahn Partners has sole voting power and sole dispositive power with regard to 18,437,498 Shares. Icahn Onshore, Icahn Capital, IPH, Icahn Enterprises Holdings, Icahn Enterprises GP, Beckton and Icahn, each has shared voting power and shared dispositive power for those shares.

Some automated news headlines released a flash report indicating that Icahn increased his stake in Gannett Co. Inc. (NYSE:CGI) to nearly 9% because his firm mistakably typed a wrong corporate tag on its form 13D submitted to the filing system of the SEC, yesterday.

Andrew Langham, a lawyer for Carl Icahn’s firm, said it would submit a corrected filing to the commission’s filing system on Wednesday morning.