Market Overview

Icahn Increases Stake in Herbalife

Icahn Increases Stake in Herbalife
Related HLF
Must Watch Stocks for February 27, 2015
UPDATE: Herbalife Q4 Earnings Top Estimates, Shares Gain
Herbalife cuts CEO pay after missed targets (Seeking Alpha)

Carl Icahn filed a 13D Thursday, showing that he had increased his stake in multi-level marketer Herbalife (NYSE: HLF). Shares of Herbalife jumped over 1.50% in after-hours trading.

Icahn raised his stake in the company from 13.6% to 15.5%. Last month, Herbalife's management had approved Icahn to buy up to 25% of the company and add two directors to the board.

Herbalife has been one of the hotest battleground companies over the last few months. In December, hedge fund magnate Bill Ackman announced that he had sold short about one-fifth of the company's shares. Ackman argued that the company was a pyramid scheme and its shares would eventually become worthless.

Icahn began building a stake in the company back in December after Ackman's presentation, and has been steadily buying more shares.

Earlier on Thursday, short seller Jim Chanos said that he believed Ackman's basic premise on Herbalife was correct, although he was no longer short any shares.

Herbalife shares closed at $41 on Thursday, and were up about $0.50 in the after-hours session.

Posted-In: Bill Ackman Carl IcahnNews Hedge Funds General Best of Benzinga


Related Articles (HLF)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→