Herbalife executives are “Uncomfortable” with Carl Icahn

Herbalife executives are “Uncomfortable” with Carl Icahn

Herbalife Ltd. (NYSE:HLF) executives are apparently starting to become concerned about what activist investor Carl Icahn’s intentions are in sticking up for the company. Fox Business’ Charles Gasparino had the exclusive new details.

Herbalife executives are "Uncomfortable" with Carl Icahn

Icahn initiated a long position in Herbalife Ltd. (NYSE:HLF) in January, going head to head with fellow activist investor Bill Ackman, who gave an extensive short thesis on the stock in December and called the company a pyramid scheme. Icahn now has a 15 percent stake in the controversial nutritional supplement company and is able to appoint two directors to the company’s board and also increase his stake in the company to 25 percent.

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According to Gasparino’s source, the company is now beginning to wonder exactly why Icahn took an interest in it and what he’s planning to do. Gasparino said it appears as if they’re becoming a little bit “uncomfortable” with his intentions. Herbalife Ltd. (NYSE:HLF) executives also issued the following statement directly to Fox Business Network:

“Herbalife stands by Mr. Icahn’s investment in the company and appreciate his shared views on the inherent value of Herbalife’s operations, products and future prospects.”

Gasparino said that this statement comes at an odd time. He said it’s strange for the company to come out in support of Icahn in this way when he was supposedly going to provide assistance in the wake of the controversy started by Ackman. He also said that many view Carl Icahn has a “corporate raider” and pointed out that Icahn was involved in many major corporate takeovers during the 1980s.

In addition, Gasparino said executives are not just worried about Icahn, but he said they are also worried about appearing worried, which is why they issued the statement in support of Icahn today.

Shares of Herbalife Ltd. (NYSE:HLF) closed down 1.58% in Tuesday’s trading session to $37.31.

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