$HLF @ $38.25…
“The hedge fund war over Herbalife keeps heating up.
Right now, shares of Herbalife are trading back below the pre-Bill Ackman short levels.
Ackman, who runs $12 billion Pershing Square Capital Management, believes the multi-level marketing firm that sells nutrition products is a “pyramid scheme” and he’s shorting more than 20 million shares with a price target of $0.
Last Thursday evening, legendary billionaire investor/long time Ackman rival Carl Icahn disclosed a 12.98% stake in Herbalife which includes shares underlying call options. That news caused the stock to spike more than 18% – way above the pre-Ackman short level.
The SEC filing also said he intends to have discussions with management “regarding the business and strategic alternatives to enhance shareholder value, such as a recapitalization or a going-private transaction.”
The next day, Icahn appeared on CNBC in a live telephone interview around 12:30 p.m. to talk about his stake. He told CNBC that he thinks Herbalife is a “very undervalued situation” and that his stake is not a personal vendetta against Ackman, but rather it’s about making money. During his appearance, the stock started to slip, but was still up on the day….”
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