Here's Why Carl Icahn And Bill Stiritz Continue To Hold Their Stake In Herbalife

Bill Ackman recently came out with a new testament against Herbalife Ltd. HLF, a video showing the company’s top executives speaking against its business model. However, some of the top shareholders in Herbalife, including Carl Icahn and Bill Stiritz, aren’t paying any attention to that and continue to hold their stake.

Bloomberg’s Duane Stanford, who last year spent time with Bill Stiritz discussing Herbalife, was recently seen discussing why none of the major shareholders of Herbalife are selling their stake as of yet.

"From what we know, he [Bill Stiritz] still holding on to his shares," Stanford said. "He spent for two years, a big believer in the company. He really feels strongly about protein shakes and about obesity and the fact that this is an answer to obesity. So, he sees this fitting perfectly into the health and wellness trends that are raging now in food and beverage. And apparently despite the fact that the stock has plummeted in the way it has and his personal wealth is at stake with this bet -- a couple of hundred million dollars even at this point that he could be down.”

Can Bill Stiritz Afford To Lose ‘Couple Of Hundred Million Dollars’ On Herbalife?

“I am not sure that very many people can stomach a couple of hundred million dollars down, but this is by what we could tell this is pretty significant investment for him for sure,” Stanford said.

Does Carl Icahn Have The Flexibility To Sell Herbalife Shares?

“Look he's got five board seats right now. So, before he could sell stock he is going to have to make some disclosures that about either leaving his board seats or at least showing that his position on the company is significantly different. So, the market should get a fairly good flag before he actually starts dumping shares,” Stanford replied.