Herbalife In Share Buyback Deal

May 7 2014 | 11:03am ET

Continuing its effort to put pressure on Pershing Square Capital Management, Herbalife today announced that it would buy back another $266 million of its stock.

The seller is Bank of America Corp. The exact number of shares repurchased will be determined by the average volume-weighted price of the stock during the program, which is set to close at the end of the quarter.

Last month, Herbalife said it would stop paying out a dividend and use the money saved to repurchase shares. Herbalife’s stock has fallen sharply this year as it faces a number of state and federal probes into Pershing Square’s allegation that it is a pyramid scheme.

The BofA deal quickly won the praise of Carl Icahn, who owns a 17% stake in the company. He said the buyback was a “great move” and “confirms confidence in the future.”

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