Icahn Wants To Sell His Herbalife (HLF) Shares To This Person

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Bill Ackman told CNBC’s “Squawk Box” today that he was indirectly approached by Carl Icahn to purchase his stake in Herbalife (HLF). Icahn has a huge stake in Herbalife, about 17 million-plus shares that are valued at around $1 billion.

Ackman, who has been a long time shorter of Herbalife, revealed that Icahn may be wanting to sell his shares now beause “he’s made a bunch of money” and that “he knows this is toast.”

Ackman first shorted Herbalife on May 1, 2012, and went public with his position in December.

According to Ackman, Icahn “came to me” through investment bank Jefferies Group with a proposal in early August to “cover my short” position.

After Ackman made his comments, shares of HLF dropped around 4.5%.

Icahn responded to the comments with, “I am not commenting on rumors and stories about what I am doing.”

“This is a confidence game. Carl is what creates the confidence in the company. If Carl sells, it can accelerate the demise of the company,” Ackman said. “With Carl exiting, I think the thing is over, and over quickly. The sooner he sells the better.”

“Carl is great investor,” Ackman said. “You were right to buy with Carl at $32 a share when he bought the stock. And you were right to sell with Carl when he sells the stock.”

Disclaimer: We have no position in Herbalife Ltd. (NYSE: HLF) and have not been compensated for this article.