Hertz Under Pressure From Carl Icahn, Investors

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Aug. 20 (Bloomberg) -- Activist Investor Carl Icahn announced in a filing that he has taken an 8.5 percent stake in Hertz, while also saying he may seek representation on Hertz's board. Bloomberg’s Jamie Butters reports on “Taking Stock.” (Source: Bloomberg)

Jamie butters.

He was not the only investor making headlines today was he?

Not at all.

He came right in the middle of a lot of activity.

Started yesterday after the close when hertz said they were making a number of changes.

They were changing the directors on the board.

Today broke the team that birch tree and other investors are asking the board to replace the ceo.

Preferably with scott thompson, the ceo of dollar thrifty.

Then in the middle of that car pops up saying he will take a large stake and make company -- make changes.

There is a lot going on there.

We know the stock fell dramatically.

What is wrong with the business?

They have problems with accounting and business.

On the business side they seem to have trouble managing the fleet.

They went where risk fleet a few years ago.

Back in the day the automakers would sell cars to hertz and avis and would sell them back for more than what they were worth often.

Later they went where risk fleet where they bought them out right, and take better care of them, the more opportunistic about well to sell them -- whern to sell them.

Hertz did the same but did not execute as well.

They got upside down with that.

They have a lot of old cars in the fleet.

They have been running big discounts that have brought people to the counter but do not have enough people to serve them.

That is the operations side.

Accounting have not reported results yet this year and said the last three years cannot be counted on.

Investors feel like they have been buying in the dark for far too long and need clarity.

The little they got tells them this company is not doing as well as avis whose stock is up

This text has been automatically generated. It may not be 100% accurate.


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