Billionaire investor Carl Icahn who has a stake in the beverage-can maker Crown Holdings IncCCK believes the company should dispose noncore units and boost buyback.
Carl’s stake in the company amounted to about $700 million, making him the company’s second-largest holder, the WSJ reported.
Crown lowered its outlook due to stronger U.S. dollar, higher energy cost in Europe, and increased interest expense.
The company’s shares have lost nearly 40% so far in 2022.
Demand for aluminum cans spiked in 2020 as consumers staying home preferred canned cocktails, spiked seltzer and beer. But after the COVID-19 pandemic subsided, consumer demand for the drinks fell steeply, leaving the company with a glut of inventory, the report added.
Icahn has suggested Crown to consider spinning off or selling the noncore assets, including a minority stake in a European food-can business, and buyback more stocks.
Price Action: CCK shares closed lower by 3.19% at $66.76 on Wednesday.
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