* To pay annual div of $4/depositary unit
* Previous annual div was $1.40/depositary unit
* Shareholders can opt for either cash or depositary units
* Shares up more than 5 percent
Feb 11 Icahn Enterprises LP, controlled
by Carl Icahn, will increase its annual dividend to $4.00 per
depositary unit from $1.40, payable either in cash or depositary
Depositary units of Icahn Enterprises, which the billionaire
investor said have gained about 817 percent since it adopted an
activist philosophy in 1999, were up 5.5 percent at $63.25 in
early trading on the Nasdaq on Monday.
Icahn, who holds about 93 percent of Icahn Enterprises, has
indicated that he intends to take units instead of cash for his
holding, the company said.
If all shareholders took cash instead of units, the company
would have to pay out about $420 million. The company had about
$3.14 billion in cash and cash equivalents as of Sept. 30,
according to its third-quarter earnings statement.
Unit holders have until March 14 to decide whether to take
cash or units.
Icahn, who has stakes in Netflix Inc and crude oil
refiner CVR Energy Inc among others, is currently locked
in a battle with activist investor William Ackman over
nutritional supplement company Herbalife Ltd.
Ackman says Herbalife is an unsustainable pyramid scheme
destined to collapse, a claim rejected by Icahn.