Herbalife rallies on Third Point's 8% stake |
| CNNMoney - Jan 9, 2013 |
Herbalife's stock rallied more than 9% Wednesday, after Third Point, the hedge fund founded by Dan Loeb, said it had taken an 8% stake in the nutritional supplement firm.
Loeb's stake, revealed in a regulatory filing, is the latest development in the battle that's heating up over Herbalife (HLF), a 32-year own multilevel marketing firm with roughly $4 billion in sales.
Herbalife has been forced to defend its business model, following accusations by another hedge fund manager, Pershing Square's Bill Ackman, who has called the company "a pyramid scheme." Ackman said his hedge fund has a $1 billion bet that the company's stock "will go to zero" by borrowing, or shorting, 20 million shares of Herbalife.
"The outcome of this investment is not about Pershing Square or anyone else who is long or short the stock," Ackman said in a statement Wednesday. "To the extent another investor, long or short, brings additional sunlight to the situation, we welcome them."
Read Full Article from CNNMoney
- Posted: 2013-01-09 16:18:54
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