Monday, 31 August 2015
Last updated 2 days ago
Feb 19 2013 | 9:30am ET
Pershing Square Capital Management is undeterred in its crusade against nutritional supplements company Herbalife by Carl Icahn's big move into the stock.
Icahn last week disclosed a 13% stake in Herbalife, two months after Pershing Square chief William Ackman attacked the company, calling it a pyramid scheme. But Icahn's buy and rumblings about seeking "strategic alternatives" for Herbalife hasn't changed Ackman's mind.
"We invest based on a careful analysis of the facts," Ackman told CNBC, whose airwaves last month hosted a 25-minute hostile exchange between he and Icahn. "After 18 months of due diligence, we have concluded that it is a certainty that Herbalife is a pyramid scheme. Our conclusions are unaffected by who is on the other side of the investment. Our goal was to shine a spotlight on Herbalife. To the extent Mr. Icahn is helping achieve this objective, we welcome his involvment.
Pershing Square has a roughly $1 billion short position in Herbalife.
During the now-legendary exchange on CNBC, Icahn asked Ackman what he would do if his stock lenders called his Herbalife shares back. "Carl's free to make a tender offer for the company," Ackman said.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…