Herbalife hit by Icahn share tender

Icahn Enterprises (IEP), Herbalife’s (HLF) largest shareholder and one of the company’s longest-standing shareholders, reported that yesterday IEP tendered its Herbalife shares into the company’s self-tender offer. Of the shares tendered, at most only 11.4M could possibly be purchased in the tender, which would still leave Icahn Enterprises as the company’s largest shareholder with at least 34.3M shares, Icahn stated. Carl Icahn added: “For almost six years, we have been one of Herbalife’s strongest, most loyal supporters; we stood by the Company through a half-decade long short-selling campaign; and we never sold a share, even after our investment doubled. But, given that our Herbalife investment has become an outsized position, representing approximately 24% exposure to total NAV, it is only prudent for IEP to reduce its exposure. IEP’s investment in Herbalife is a quintessential example of our activist investment strategy…We are very proud of our activism at Herbalife and the value we have created for all shareholders. From our first Herbalife share purchase in late 2012 through yesterday, almost $7 billion of value has been created for all Herbalife shareholders. We believe Herbalife’s business is stable, the short-sellers have largely exited, and the Company is well-positioned for the future. On behalf of all shareholders, I congratulate Michael Johnson, John DeSimone, Rich Goudis and all the other members of management, all the employees and all the distributors who have stood by, and steered, this Company so effectively over the past six years.” Following the announcement, Herbalife shares are down $4.17, or 7.75%, to $49.66 in pre-market trading.

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