Herbalife To Appoint Two Icahn Directors, Icahn Gets Right To Boost HLF Holdings To 25%

Tyler Durden's picture

This is not Bill Ackman day. After getting creamed on JCP, here comes Icahn to make sure Ackman never forgets the day the DJIA is set to rehit all time highs.


HLF stock halted, then unhalted and, not unexpectedly, up.

For those curious, here are are Ackman's top positions:

Full release:

Herbalife (NYSE: HLF) today announced that it has reached an agreement with Carl C. Icahn, Icahn Enterprises Holdings L.P. and certain related entities (collectively the “Icahn Parties”), which beneficially own, in the aggregate 14,015,151 shares of Herbalife common stock, representing approximately 13.6% of the Company’s outstanding shares. As part of the agreement, Herbalife will increase the size of its Board of Directors from nine to eleven members immediately before the 2013 Annual General Meeting of Shareholders (“the Annual Meeting”). Herbalife’s Board of Directors will nominate two individuals to the Company’s Board of Directors, designated by the Icahn Parties and approved by the Company’s Nominating and Corporate Governance Committee.

Under the terms of the agreement, the Icahn Parties have agreed to, among other things, abide by certain standstill provisions and vote their shares in support of all of the Board’s director nominees. The Icahn Parties have the right to increase the size of their ownership position in Herbalife up to 25% of the outstanding common stock. A copy of the agreement with further detail will be attached to a Current Report on Form 8-K to be filed by Herbalife with the Securities and Exchange Commission.

We are pleased to have reached this agreement and look forward to working with the Icahn representatives as members of our Board of Directors,” said Michael O. Johnson, chairman and chief executive officer of Herbalife. “We appreciate the Icahn Parties’ shared views on the inherent value of Herbalife’s operations, products and future prospects.”

“Over its long history, Herbalife has proven its ability to increase revenues and returns, and we will work with the Company to build on its results,” said Mr. Icahn. “We conducted considerable research on Herbalife and its business before making our investment in the Company, and have great respect for its Board and management team, and believe in the Company's great potential. We expect our shareholder representatives to provide positive input into Board decisions affecting the future of the Company.”

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astoriajoe's picture

Now can I short this thing?

DJ Happy Ending's picture

I love how this devolved into a dick measuring contest between these guys, played out in the media.

scatterbrains's picture

yea makes you think they are actually working together moving the stock here and there while loading/unloading options etc.

Fish Gone Bad's picture

I am so glad I am not on either side of this trade.  

James_Cole's picture

“We conducted considerable research on Herbalife and its business before making our investment in the Company, and have great respect for its Board and management team, and believe in the Company's great potential."

Lol, I assume the research they're referring to is the CNBC bitchfight?

ZerOhead's picture

Showdowns bore me, Carl, Nobody wins. You can have the company. In fact, its gonna be fun watching you and your giant ego try and make a horse race out of it.


~ Gordon Gekko

azzhatter's picture

I have to wait until Jim Cramer tells me how to think about this. I follow him closely. He was very high on JCP when Ron Johnson took over. He was calling AAPL $1000 and I want to get his views on Herbalife so I can make the proper investment decision

EclecticParrot's picture

Wish they'd change the name to Get-A-Life -- so tired of hearing about this frat-boy handbag fight, particularly as it's not advisable for any of us little fish to swim in these waters.

McMolotov's picture

"...frat-boy handbag fight..."

Excellent description.

EclecticParrot's picture

... just narrowly beat out "prep school piss-fest."

Cdad's picture

The BlowHorn [CNBC] breaks into their programming for this breaking news on how one giant dickhead member of the criminal syndicate known as Wall Street has made it his personal mission to destroy another.

In the meantime, Detroit bankruptcy and WalMart sales and supply chain collapse...nothing.

Perfect day to see the syndicate's propaganda machine at work.

Temporalist's picture

Herbalife sells a patented brand of SleepEasy Koolaid that is part hopium mixed with fraudium.  Anyone with a microphone and tv camera can become a distributor.

TruthInSunshine's picture

Herbalife, its products (and their actual value/utility) and its business model is THE PERFECT symbol of Amerika's NEW ECONOMY.



Just Ice's picture

probably typical multi-marketing scam...get young people in to dance $ in their heads, make them think they will become rich, rich, RICH, with just few simple sales of a (usually horrible) product that will practically sell itself....and, of course, no downside because if you never even make a sale, you've bought yourself some (usually horrible) absolutely GRAND product at bargain basement wholesale price that you can consume yourself...the proposed salesmen are young, naive, put out their dollars as an investment in something they think will make them easy, RICH, then can't sell it so all they did was make an unnecessary purchase and the cons, er higher up company salesmen, just transferred their bucks into their own pockets....bunch of easy sales for them, not selling the (usually horrible) product claimed to be so great but rather selling the dream of riches to the young and gullible.  F'd up scam multimarketers....hope HerbalLife dumps big time as seems to me it is a typical deceptive organization of this type.  Also hate all the internet "gotcha" companies that offer their f'd up, hyped up, overpriced products as "free trial"...just pay shipping and handling (for which they get a credit card number with the shipping and handling usually covering their cost of product anyway)...but if you fail to cancel within their time limits on the "free trial"...often short enough time that the trial product hasn't even arrived yet...then they start billing credit card monthly for subscription to their (usually horrible) WONDERFUL product that would've never been voluntarily purchased following a legitimate free trial without the "gotcha" scam attached.

I don't know agman or i-con or have any position in Herbal Lie.      

Freddie's picture

Anyone who still watches TV or Hollywood's shit supports The Matrix and is a douche like Ackman.  Tv dicks like being little sheep.

F TV and F Hollywood - they are Obummer's pals.

ebworthen's picture

And they announce it in the last hour of trading, and halt trading for a bit.


fonzannoon's picture

who gives a shit about this?

Dr. Engali's picture

I kind of think it's funny. I don't like Icahn at all, but I think it's funny watching Ackman get brutalized.

Freddie's picture


I don't like Ichan but Ackman is a real douche.

Dr. Engali's picture

I look forward to round two. I wonder if Carl can make him cry next time.

carlsbro's picture

Buy gold is cheap today!

Dr. Engali's picture

Good luck. I just went to put an order in with my regular dealer and they don't have any.

carlsbro's picture

Yeah is a peak gold. Ask for some ganja then

Dr. Engali's picture

It's been so long since I've had anything of that sort, that I wouldn't know waht to do with it.

carlsbro's picture

Not surprise .I  think all the gold eaters have forgotten how to get fun. Ok tomorrow is the end of the world, the  obamagedon,  the eurodebacle, the superinflation, currency wars etc  so lets party!

carlsbro's picture

Not surprise .I  think all the gold eaters have forgotten how to get fun. Ok tomorrow is the end of the world, the  obamagedon,  the eurodebacle, the superinflation, currency wars etc  so lets party!

lemonobrien's picture

Icahn is get'n fucked.

californiagirl's picture

I hope so.  It would be nice to see a criminal suffer some consequences.  Better than nothing.

BlueStreet's picture

HLF up 6% and JCP down 16%, Bill is having quite a day. 

SillySalesmanQuestion's picture

Dear Bill,

                because I Cahn...



JustObserving's picture

If you needed any further confirmation that the stock market is a ponzi scheme run by the oligarchs and monitored by the porn-watching SEC, today should be the final confirmation.

And silver and gold getting hammered as the CFTC sees nothing wrong. 

It is morning in America.  Buy some Facebook and Herbalife -short some silver and gold.  Bernanke wants it that way.


adr's picture

In other words, a gaint thank you handout for allowing the Herbalife board to enrich themselves with stock worth 100x what it should.

Nobel Prize for Charles Ponzi. Even in his wildest dreams did he think his scam could be run so well.

It really is time for the guillotines. It would be justice that the day after hitting all time highs evry banker and corporate board member gets his head chopped off.

buzzsaw99's picture

When jcp goes bk broiler that should be good for ggp. :NOT!:

fuu's picture

More confidence building in the markets by these two girls.

Dr Paul Krugman's picture

Gold is down because it is a worthless investment, oil is down because its price is transitory, and stocks are up because in the last few months Bernanke has finally done what he should a long time ago and given confidence to the markets by starting a purchasing program and shown gravitas while speaking to Congress. 

buzzsaw99's picture

gold just sits there and does nothing

Dr Paul Krugman's picture

Agreed - I pushed the green arrow button!

McMolotov's picture

Krugman and his Facefuck stock share meaningful glances and, occasionally, bodily fluids.

californiagirl's picture

Icahn is a criminal who thinks he is above the law.  He should have had all his wealth confiscated and should have remained in jail.  He is a shining example, to all of those ethically challenged bankers, of the (lack of) consequences of fraud and illegal activity.  And we wonder why corruption is so prevalent?

medium giraffe's picture

This is starting to smell funny.  It's all too public. They're probably in a bar together somewhere laughing their arses off right now.

billsykes's picture

Its all a ponzi, but herbalife sells product thats the difference- ackerman is going to have his ass handed to him on this on. 

Friend of mine said if you are going to ever fight old guys make sure you can are willing to put them right down, or else they will keep getting up. 


Pedantic Rube's picture

Ok someone explain this to me.

Ackman:  25% short the float. It may be 20% but let's just say 25%

Ichahn: 25% long

Loeb: 8% but it's probably more like 10% now because we all know he hates YAckman

CFFO:  $600mm

Cash:  $350mm

Mkt cap: $4b

Couldn't they just do a 25% buyback, or announce one?  If so the numbers change to 31% Ackman, 31% Icahn, 12% Loeb so that's 74% of the float spoken for, so how the eff does YAckman cover?!?!  It's basik algebra stoopid.

billsykes's picture

ichahn bought options, and doesnt have shares, akman shorted so he is borrowing. both bought on the cuff- why did you really expect them to actually own something?