Shares of Herbalife opened higher this morning after billionaire investor Carl Icahn revealed a huge stake in Herbalife yesterday evening equal to 12.98%, or 14,015,151 shares.
Herbalife is the stock that Icahn’s decade-long rival Bill Ackman, the CEO of Pershing Square Capital Management, is shorting. Ackman, who believes the company is a pyramid scheme, is shorting 20 million shares of Herbalife with a price target of $0.
Ackman responded this morning that he welcomes Icahn’s investment in Herbalife and he continues to believe the company is a pyramid scheme.
The stock is now trading above the pre-Ackman short level. It was last trading up $ 6.02, or 15.73%, at $44.29 per share.
Check out the five-day chart:
Photo: Yahoo! Finance