Carl Icahn Raises Stake in Car Rental Company Hertz

Activist investor Carl Icahn raised his stake in US car rental company Hertz Global Holdings Inc to 10.77 per cent from 8.48 per cent.

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 per cent 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 per cent since Icahn revealed his stake in the company on August 20.

Copyright: Thomson Reuters 2014