Icahn buys 14 million shares in Herbalife, eyes options for company
By Svea Herbst-Bayliss | February 15, 2013 10:49 AM EST
Carl Icahn on Thursday put his money where his mouth is.
The billionaire investor said in a regulatory filing that he owns 14 million shares, or 13 percent, of weight-loss and vitamin company Herbalife Ltd.
After weeks of speculation over exactly what the famed corporate raider might be doing, Icahn spoke up and put himself on a collision course with William Ackman, a rival activist investor who called Herbalife a house of cards and said he sees the share price going to zero.
The two men famously tussled on cable television in late January when Icahn called Ackman a "major loser" and warned him of trouble ahead in the form of a major short squeeze.
Herbalife's share price surged 20.6 percent in the wake of Icahn's filing, trading at $46.15 after the market closed.
Icahn said he wants to meet with Herbalife's management "regarding the business and strategic alternatives to enhance shareholder value, such as a recapitalization or a going-private transaction."
The company said: "We welcome all parties who see the same value in Herbalife that we do."
One short squeeze has already occurred, experts said.
(Reporting By Svea Herbst-Bayliss with additional reporting by Martinne Geller and Sam Forgione; Editing by Xavier Briand)
Most Popular Slideshows
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Angelina Jolie & Brad Pitt’s Top Secret Wedding Tramps Jennifer Aniston’s ‘Friends’ Reunion & Pregnancy Talks [PHOTOS]
- 2014 US Open: Hottest Male Tennis Players To Watch [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- PlayStation 4 Killing Xbox One Costing Microsoft Millions But It's Fine
- Nexus 6 Release Date Update: Moto X+1 Look Leaked, Nexus X or Shamu Moved to Demo Phase