About Us  |   Contact Us  |   Register  | Login  |   

Follow HedgeWorld on Twitter HedgeWorld on LinkedIn






HEDGEWORLD NEWS
Search the News
News Archive
HedgeWorld News by Region
United States / Americas
Europe
Asia / Australia
International
HedgeWorld News Sections
Managed Futures & Derivatives
Daily News
Regulatory/Legal
Strategies/Analysis
Technology
Opinion
People
Indexes
Other News Features
Most Popular
Reuters Headlines
Alternative Advantage Daily Newsletter
RSS Service
Sign Up For Email News Alerts
Reprints

Carl Icahn says 'time to be cautious' on U.S. stocks
By Reuters
Thursday, July 10, 2014 Email this story  |  News Tracker  |  Reprints  |  Printable Version

NEW YORK (Reuters)—Billionaire activist investor Carl Icahn said on Thursday [July 10] that it is time for U.S. stock market investors to tread carefully after the run-up on Wall Street.

"In my mind, it is time to be cautious about the U.S. stock markets," Icahn said in a telephone interview. "While we are having a great year, I am being very selective about the companies I purchase."

U.S. stocks fell on Thursday as concerns about the financial health of Portugal's top listed bank gave investors a reason to cash in recent gains. The Standard & Poor's 500 stock index fell as much as 1 percent at one point before sharply rebounding, to close down –0.41 percent at 1,964.68.

Icahn has been pressuring discount retailer Family Dollar Stores Inc. to sell itself. On Thursday, Family Dollar said its profit fell by a third as it cleared inventory ahead of planned store closures and competition intensified.

Icahn, Family Dollar's largest shareholder with a 9.4 percent stake, wants the company to sell itself to rival Dollar General Corp. to help them cope with stiff competition from big-box retailers such as Wal-Mart Stores Inc.

Icahn said: "The leadership, to say the least, is questionable at Family Dollar and it's been that way for many years. Howard (Levine) might be a nice guy but he is far from the right leader for Family Dollar."

Icahn added: "We believe Family Dollar and Dollar General should merge as they would make for perfect partners. It is obvious that Family Dollar, especially in light of its record and the looming competition on the horizon, could use a partner.

"However, unfortunately, the announcement of Dollar General Chief Executive Rick Dreiling's retirement is a setback to an activist player like us that would like to accelerate this process but it doesn't mean it is insurmountable on a long-term basis" with regards to a possible merger between Dollar General and Family Dollar.

By Jennifer Ablan


Send This Story to a Friend | Order Reprints Online
Send Feedback to the Editors | Receive News Alerts by Email
Display Printable Version of This Story

Story Copyright © 1999-2014 Reuters HedgeWorld All rights reserved.






Lipper    Privacy   User Policy  Legal Disclosure Copyright/DMCA  Site Map    FAQ    Glossary  Thomson Reuters for Hedge Funds
All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of HedgeWorld content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. HedgeWorld is a registered trademark of Thomson Reuters.