Carl Icahn takes 9.9% stake in JetBluel, says shares ‘undervalued’

Icahn Enterprises disclosed a 9.9% ownership stake in airline JetBlue today, Icahn’s first foray back onto the dance floor after promising that the firm would “stick to our knitting” after short-seller Hindenburg Research published a biting criticism of the company last year. Shares of Icahn Enterprises are down about 72.2% during the past five years, and more than 60% since the Hindenburg report.

Meanwhile, JetBlue has been licking its wounds since a judge’s ruling blocked an estimated $3.8 billion merger with Spirit Airlines. JetBlue’s stock is down 66% during the past five years but rose about 16% after Icahn disclosed his shares in the airline today.

Icahn disclosed in the filing today that the firm acquired the JetBlue stock because it believes it is “undervalued and represented an attractive investment opportunity.” Icahn Enterprises has had discussions with board members and executives about seeking a seat on the JetBlue board and continues to hold talks with the airline, according to the filing.

In a statement, JetBlue said it welcomes Icahn’s overtures.

“We are always open to constructive dialogue with our investors as we continue to execute our plan to enhance value for all of our shareholders and stakeholders,” said the company in an email.

However, the timing for JetBlue may be less than ideal given that the company’s new CEO, Joanna Geraghty, moved to the helm officially today. Geraghty was president and chief operating officer since 2018 and previously served as executive vice president and chief people officer. Chief operating officer Warren Christie also officially started today, after serving as head of security, safety, and fleet operations.   

Geraghty replaced departing CEO Robin Hayes, who served in the role since February 2015. Hayes…