Hertz Global Holdings, Inc. (HTZ) Under Fire from Carl Icahn and Other Investors for Shoddy Operations

Hertz Global Holdings, Inc. (NYSE:HTZ) is now under the greater protective wing of activist investor Carl Icahn, who disclosed his 8.48% stake in the rental car company on Wednesday. What may be good news for shareholders (the stock rebounded sharply yesterday after the revelation) may be bad news for incumbent Hertz Global Holdings, Inc. (NYSE:HTZ) CEO Mark Frissora, who was under attack by other investors yesterday, including Fir Tree Partners’ Jeffrey Tannenbaum, for what was described on Bloomberg yesterday as accounting and business difficulties.

Carl Icahn as viking

“They have problems with their accounting, and they have problems with the business. On the business side, they seem to have had trouble managing their fleet. They went to what’s known as a risk fleet a few weeks ago,” said Bloomberg’s Jamie Butters.

As Butters explained, this is the same model that was adopted by both Enterprise and Avis Budget Group Inc.(NASDAQ:CAR) some years back, in which the rental company buys the cars outright, takes care of them, and then sells them on the used car market at opportune times for a good profit. Hertz Global Holdings, Inc. (NYSE:HTZ)’s recent adoption of this model has not gone well, however, and the company has been ill-equipped to handle customer flow, and is saddled with many older vehicles in its fleet.

More troubling still, particularly for investors, is Hertz Global Holdings, Inc. (NYSE:HTZ)’s suspect accounting. The company hasn’t reported any financial results this year, and now claims their results from the past three years can’t be trusted.

While Icahn has not yet made a specific statement regarding Hertz Global Holdings, Inc. (NYSE:HTZ)’s CEO Frissora, he did divulge that he has plans to seek an audience with the board and possibly a place on it, and to discuss the operational challenges, under-performance of the company compared to its peers (Avis’ stock is up 70% this year), and the lack of faith in management.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!