Billionaire investor Carl Icahn's investment arm, Icahn Enterprises L.P. announced Monday a deal to sell its American Railcar Leasing LLC subsidiary for up to $3.36 billion to SMBC Rail Services, which is a susidiary of Sumitomo Mitsui Banking Corp. Under terms of the agreement, Icahn Enterprises will receive cash based on an enterprise value of $2.78 billion and a fleet of 29,000 railcars. SMBC will have an option, lasting three years after the expected closing of the deal in the second quarter of 2017, to buy an additional 4,800 railcars for $586 million. Icahn Enterprises' stock shed $1.82, or 3%, in midday trade. Since Carl Icahn owns 127.1 million shares of Icahn Enterprises, or an 89.7% stake, according to FactSet, the stock price decline is costing Icahn about $231.3 million. Icahn Enterprises shares have shed 3.1% year to date, while the S&P 500 has gained 11%.
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