This page has been archived and commenting is disabled.
Icahn Thanks Ackman For "Very Big Mistakes"
As if today's collapse in JCP's stock price, Bill Ackman had his nose bloodied both figuratively and numerically when his now arch-nemesis appeared on Bloomberg TV to explain his gaining two seats on the board and option to purchase 25% of Herbalife. While obviously not full of the to-and-fro fireworks of their recent encounter, Icahn had quite a few jabs at Ackman record lately, "he has made a few very big mistakes," and thanked him for his big mistake in "giving us an opportunity to buy a company at a discounted price." The interview was full of Icahn's normal bluster but he once again brought up the fact that this whole 300-page dog-and-pony show was undertaken right before year-end, "I do not understand why someone... talks about the fact that he is short," for obvious reasons, "except to say that it certainly helped his year-end numbers."
Icahn on the news that he can purchase up to 25% of Herbalife and nominate two people to its board:
"Yes, that is correct. We are excited. As we have said, this is not one where we do not like management. We do like management quite a bit. Here you have a company that is growing at 10% a year, I believe. Frankly, I do not understand the criticism that Ackman makes about it. We have done a lot of work on it. We have looked through what he says. Even when it comes to lawyers, he claims that Sullivan & Cromwell has agreed that it was a pyramid scheme, but I do not believe that a firm of that stature would ever have said that. He has no evidence concerning that. Our attorneys say they have looked at it and they doubt very much any large legal firm would say that. We think Sullivan & Cromwell is a fine firm, but they are not specialists in the area of the FTC which deals with the Bureau of Consumer Protection. We have done a hell of a lot work on this and we're excited by it. Again, we are looking forward to going on the board and working with the company. We're very supportive of them."
On what Herbalife needs to do to convince Wall Street that it is a sustainable business model:
"I don't know why you have to convince shorts. They, so to speak, made their bed. The shorts do not own the stock. That is why it is ironic that Akman puts out a questionnaire they have to answer. Why should they have to answer a questionnaire to people that don't own the company? In fact, they disown the company. What does it convince mean?...Frankly, I would like to buy more stock. I like the company, but it is not my job to try to convince anybody."
On who he'll put on Herbalife's board:
"We have two candidates from Icahn and Company. Two of my top people will be going on."
On what their goals will be:
"We do not like to micromanage. Basically, what a good board member should do is make sure the numbers are coming in properly. That there are no big problems. The problem in America is in too many companies, the boards do not understand their duties, with many exceptions. I do not think it is the duty of the board to tell anyone how to run the company. They have to make sure they're doing better than their peer group, that their numbers are coming in. That is what we do when we go on boards, and it has been very successful as you can see by our record. We really do not see the problems that Ackman brings up."
On whether he will go all the way to 25%:
"We do not discuss our investment plans. We bargain for that right in talking to the company and they were very good to talk to. I think we have a good rapport with them. We like them. They are putting on two seats and we have the right to go up 10% more, which obviously I bargained for so I am interested. I do not know if I will run in and buy them at this price, but we certainly are interested in doing that."
On whether he believes Ackman made a huge mistake on Herbalife:
"Well, if you look at his record lately, he has made a few very big mistakes. I am not going to say just this one. I am not here to question Ackman. I do not want to get pulled into that again…I look at it as a great opportunity. Ironically, I thank him for giving it to me. Does not mean I like him."
On Ackman's allegations against Herbalife:
"We look at what a pyramid scheme is and obviously we do a lot of research before we take big positions. You know, I do not even want to dignify what he says. I read his report and do not understand what he is saying. He obviously thinks -- I mean, he does not like the brand or something like that and that is fine. I tell you, I do not comprehend why somebody, if you go short, why you have to put out a 300 page report unless you're just trying to trash the stock. I do not understand what he did and why he is trashing it. I have gone short on companies, but I never talk about it. I try to keep it quiet. I get mad if anybody talks about the fact that I am short for obvious reasons. I will not even dignify what he does except to say that it certainly helped his year-end numbers. But I am not accusing him of that. You're asking me what could be a possible reason, but I do not know if that is the reason."
On whether it's artificial manipulation:
"I will not say that. That is up to the SEC. And I am not saying that, I want to be clear. I am just speculating. I have not talked to Ackman for years and I do not intend to talk to him. I am not speculating. Well, I am speculating, but I have no real idea of why he has done it nor do I care that much."
On Ackman saying he'll donate all of his proceeds to charity:
"Well, that is assuming he end up with any proceeds. But the risk is his limited shareholders, not him. His partners. When he says he is not donating, he is not donating his incentive fees, I guess is what he means. I do not quite know what he means. I do not care…As I told you, I do not respect him. I do not like him. That is as far as I will go."
"Honestly, I think that Ackman has given us an opportunity to buy a company at a discounted price. I think that this company, before Ackman really got into it, was trading at what, $45, $47, and it got all the way down to the high $20s. I think it gave us a great opportunity to buy it. For that, I thank him. As far as that goes, that is as far as I want to go into that situation. I bought it because I really do think that it is in a secular change. I think they're in 87 countries, and I think this is an opportunity for unemployed people in these countries to make money and it is a way to distribute it. I think the product is a good product."
On Ackman's accusation that Herbalife distributors aren't really distributing:
"But if you look said it, perhaps the distributor is not the right name for a lot of them. You know, you say you are a distributor because you get a discount. You take the product, you use it. A lot of people do drink this. They believe in it. They have these meetings. It is like -- I do not know what you call it, but they have group meetings. I think distributor maybe should not be the name for a lot of them because they're not in it to make a fee. The others are called distributors because they get a discount. It is a name. I do not understand that argument."
On whether distributors should be called something else, like preferred customers:
"That is right. I mean, that is a good point. It is like you belong to the Costco club and you get a discount, something like that."
»
- 10786 reads
- Printer-friendly version
- Send to friend
- advertisements -
Look no further to fulfill your entertainment quota ... Jew vs. Jew is COMEDY CENTRAL...
~~~
Is that a 3D image of Ackman's nose?... It scared me... I covered my keyboard with a handkerchief...
The new three bedroom home.
"You know, you say you are a distributor because you get a discount. You take the product, you use it. A lot of people do drink this. They believe in it. They have these meetings. It is like -- I do not know what you call it, but they have group meetings. I think distributor maybe should not be the name for a lot of them because they're not in it to make a fee. The others are called distributors because they get a discount."
Icahn, brilliant as always, clearly he has a deep understanding of HLF's business model.
I wonder how far he'll actually go to support the price? Why HLF trades above 20$ God only knows.
Because they make lots and lots of money. ??
No fight club rules here!
"I could break you, mate, in two pieces over my knees. You know it, I know it. I could buy you six times over. I could dump the stock just to burn your arse. But I happen to want the company, and I want your block of shares."
http://1.fwcdn.pl/ph/10/66/1066/212683.1.jpg
"Sir Larry" Icahn.
+1
Herbalife is a Ponzi. That must make it hurt Ackman even more !
lol damn straight, that mlm has been confounding people, sane people for decades.
There is no market any more, only manipulation, and so there will be increasingly perverse incentives for companies to solely focus on manipulation. Since fundamentals and actual business has become irrelevant, we will have more and more shitheap companies like Herbalife.
Apparently it is a 4 billion market cap and I've never seen or heard about any of its products outside this. I've at least seen Avon crap being peddled. Who sells this crap let alone buys this crap?
In order to jump start this economy, we must revert back to Paul Krugmans Alien Invasion Policy.
/sarc
Illegal alien invasion policy? Way ahead of you. It's even better for the economy to catch and release, so you can catch them again, it's a stimulus!
A nice camp would be the best place for the both of them.
I love your username ~ but I'm gonna VOTE that one down (-1)
~~~
'Camps'?, don't go there... Stick to the COMEDY [of 'Jew Inc.']... Don't marginalize the TRAGEDY which a few undeniably suffered, with an unfortunate but probable assist by their bretheren...
Carl making slick pretty boy his bitch... Because he can. That salty old nutsack can't taste good.
Ackman has his tit in a wringer on this one.
That wasn't his tit.
I hope Icahn loses his sorry ass on this obvious Ponzi, but he is probably already working on exiting.
Stay away from anything he touches. He will clear everyones chips to his side of the table.
china pmi just shit the bed.
That's ok, the Richmond numbers will more than make up for it, or Philly or whatever. Bernankabama doesn't need no stinkin China.
"Herbalife Battle Shows How the Game Is Rigged"
http://www.bloomberg.com/news/2013-02-24/herbalife-battle-shows-how-the-...
I don't know who is right or wrong on HLF....but Thank You for the volitility and the trading opportunities!!!
Cha-ching
I can tell you with 100% certainty that Herbalife is a pyramid scam ponzi bullshit money grabbing money laundering fraud.
Every board member should be in jail and the headquarters and all assets should be seized by the SEC.
The fact that this fraud of a company is allowed to exist for another day is proof our government doesn't give a rats ass about anyone other than those engaged in active fraud. By giving a rats ass that means backing them in any way possible to keep the fraud going for backdoor handouts so they never actually need to work.
... a dick measuring contest ... when will these "titans" of industry realize they come across as nothing but couple douche bags to the rest ...
a "dick measuring contest"?... I must pre-warn you that electron microscopes are costly... Better consult Dr. Venkman before proceeding...
~~~
http://www.youtube.com/watch?v=2hoHds88Slk
This is kinda sad actually: "Pollution May Be Shrinking Otter Penises; Scientists Say Research Is 'Warning' For Humans"
http://www.huffingtonpost.com/2013/02/27/pollution-shrinking-otter-penis...
I downvoted you for reading Huffpo. Fuck that bitch, she brags about her site, when all she does is whore out other peoples content, for free. Even better, Henry Blodget sucks her ass clean for Business Insider scraps, and both of them lack the balls to have unfiltered REAL DEAL comments. Where would Zero Hedge be without Robotrader, or MDB? While I'm at it, MDB is getting soft, and getting to many upvotes, we need a new baitroll. MDB, I expect better, you need to get back into the red.
Latest installment of "Yids gone wild." Free publicity for both, but otherwise... yawn. Lemme know when one shoots the other.
The battle of the parasites round two. You lose, they win. You can only win my not entering the casino. Any questions?
to finish this battle icahn should now publicly announce they he is willing to sell ackman 100 million dolars worth of $35 puts one year out at half price[ half the current bid] under the following conditions. 1, ackman buys the puts with HIS OWN MONEY..2ackman does not hedge them and he agrees to hold them till they expire....THIS WAY ACKMAN MUST SHIT OR GET OFF THE POT
those puts are cureently bid at around $7 each ,,,i cahn offer to sell them for $3.50......gives ackman one year to get the stock under $31.50 to break even at a $35 STRIKE PRICE. i bet ACKMAN WILL NOT TAKE THEM AT HALF PRICE IF HE HAS TO USE HIS OWN MONEY AND CAN'T HEDGE THE POSITION.
#