Carl Icahn Reports HUGE Stake In Herbalife

Carl Icahn

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Billionaire investor Carl Icahn has disclosed a massive stake in Herbalife equal to 12.98%, 14,015,151 shares, according to an SEC filing.“The Reporting Persons intend to have discussions with management of the Issuer regarding the business and strategic alternatives to enhance shareholder value, such as a recapitalization or a going-private transaction,” the filing states.

Icahn told CNBC’s Scott Wapner that he’s done a great deal of research on the company and he doesn’t think that it’s a pyramid scheme. 

Herbalife is the stock that Icahn’s decade-long rival Bill Ackman, the CEO of $12 billion Pershing Square Capital Management, is shorting.  Ackman, who is shorting more than 20 million shares, believes that the company is a “pyramid scheme” and has a price target of $0.

Just last month, the two hedge fund titans, who have been fighting for a decade, duked it out on CNBC in a live telephone interview with Icahn hurling brutal insults at Ackman.  

The stock is soaring on the Icahn news.  Herbalife is up 18.11%, or $45.20 per share, in after-hours trading. That’s above the pre-Ackman short level. 

Watch Below: How Herbalife Became The Apple Of Discord For Carl Icahn And Bill Ackman

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