Icahn Puts Money Where Mouth Is On Herbalife

Feb 15 2013 | 3:03am ET

During their now-legendary verbal fisticuffs on CNBC last month, Pershing Square Capital Management's William Ackman suggested that Carl Icahn make a tender offer for Herbalife, which the former has called a pyramid scheme.

Yesterday, Icahn suggested that he just might.

Icahn said that he has amassed a 13% stake in the nutritional supplements company, all of it after Ackman delivered his initial attack on the company last month. Indeed, Icahn boosted his stake after his joint interview with Ackman on CNBC Jan. 24, during which he angrily refused to disclose whether he had taken a position in the company.

Icahn's stake in Herbalife, which was down 10% from when Ackman announced he was shorting it, prior to Icahn's disclosure after the closing bell, is even larger than Daniel Loeb's Third Point, which announced its long position last month.

Icahn, who has engaged in a decade-long feud with Ackman, said he would speak with Herbalife about strategic alternatives for the company. Those alternatives include taking the company private.

Ackman has said that he doesn't believe that Herbalife can be sold.

Icahn, however, begs to differ, writing in the filing that Herbalife "has a legitimate business model, with favorable long-term opportunities for growth."

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...