Icahn Doubles Down on Hertz as Missed Earnings Punish Stock

  • Billionaire owns third of chain after Tuesday’s 23% plunge
  • Hertz CEO Tague cuts profit forecast on depreciation costs

Carl Icahn.

Photographer: Scott Eells/Bloomberg
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After Hertz Global Holdings Inc. missed its earnings target by a long shot, investors dumped the rental-car company’s stock with one notable exception: Carl Icahn.

The 80-year-old billionaire, already Hertz’s biggest shareholder, more than doubled his stake in a show of support for the rental-car chain and by extension for the boss he helped bring to power two years ago. John Tague, a former executive of United Airlines, arrived as Hertz’s chief executive officer in late 2014, a few months after Icahn successfully fought to obtain three director seats.