Carl Icahn raises stake in car rental company Hertz

By Reuters

Nov 25, 2014 10:30 PM EST

Activist investor Carl Icahn raised his stake in U.S. car rental company Hertz Global Holdings Inc to 10.77 percent from 8.48 percent.

The billionaire was already Hertz's largest shareholder and in the past few months had successfully pushed for management changes and won board seats on the company.

Hertz shares rose 1.7 percent to $25.68 in trading after the bell on Tuesday.   

Hertz has owned up to a string of accounting errors, originating in 2011, that will require it to restate or correct its financial results for the past three years.

Earlier this month, Icahn-backed John Tague was named as Hertz's chief executive, fending off a challenge from Dollar Thrifty CEO Scott Thomson, who was backed by Jana Partners, the company's second-largest shareholder.

The role had fallen vacant in September after Mark Frissora stepped down citing personal reasons, about a month after the accounting issues came to light.

Up to Tuesday's close, Hertz's stock had fallen 20 percent since Icahn revealed his stake in the company on Aug. 20.

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