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.
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