Hertz CEO Encouraged By Bill Ackman's Major Investment: 'We Should All Feel Encouraged'
Hertz Global Holdings Inc. (NASDAQ:HTZ) CEO Gil West expressed optimism following Bill Ackman‘s significant investment in the company.
What Happened: Ackman’s firm, Pershing Square Capital Management, revealed a substantial stake in Hertz, boosting the company’s stock price.
Ackman’s investment firm increased its position in Hertz to 19.8%, making it the second-largest shareholder. This move follows a regulatory filing that initially showed a 4.1% stake by the end of 2024.
"Let me start by saying I am humbled, and we should all feel encouraged by Bill Ackman's comments and energized by the strong support shown by him, Pershing Square Capital Management, and others who share confidence in our strategy," said West.
Ackman received an exemption from the SEC to delay filing, allowing for additional share accumulation.
West, who took the helm at Hertz in April 2024, shared his thoughts in an internal message to employees.
He emphasized the importance of Ackman’s endorsement, describing it as a testament to the company’s progress and the relentless efforts of its workforce.
Hertz, which emerged from bankruptcy in 2021, has faced challenges, including a $2.9 billion loss in 2024. The company is now focused on its turnaround plan, including a shift from its previous electric vehicle strategy.
Why It Matters: The investment by Bill Ackman comes at a crucial time for Hertz, as the company seeks to regain its footing after significant financial setbacks.
On April 16, Hertz shares surged by 25% in pre-market trading after Ackman disclosed a $46.5 million investment, signaling strong market confidence in the company’s potential recovery.
Moreover, Ackman shared his investment thesis, proposing a potential partnership with Uber for an autonomous vehicle fleet. This strategic vision aligns with Hertz’s efforts to innovate and adapt in a rapidly changing market.
As Hertz continues its turnaround strategy, Ackman’s endorsement and strategic insights could play a pivotal role in shaping the company’s future trajectory, providing both financial support and visionary guidance.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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