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The Model Works: Carl Icahn On Why He's Buying Herbalife Shares

IEP, HLF

Carl Icahn of Icahn Enterprises LP (NASDAQ: IEP) graced the stages of CNBC and Institutional Investors' Delivering Alpha conference Tuesday afternoon. As the effective headliner of the event, Icahn made notable comments on a number of his positions, including Herbalife Ltd. (NYSE: HLF).

"Herbalife makes some good products. Some people make a great living from Herbalife," Icahn told the audience. The Herbalife "model works," according to Icahn, and that's why he's buying the stock.

Related Link: Delivering Alpha 2016: Everything You Need To Know

Icahn believes the Federal Trade Commission was looking into Herbalife's practices "because of Ackman, pure and simple," referring to Pershing Square's Bill Ackman, a fund manager long known to be vehemently against Herbalife. "The FTC took too long in looking at Herbalife," Icahn said.

"No professional would want to be short a company if I could go long up to 50 percent," Icahn quipped. He highlighted he paid $280,000 for accelerated approval for that 50 percent.

Icahn concluded by mentioning he "thought about" a tender offer for Herbalife, but now has "no stated intent" to do that offer. He believes Herbalife "is a candidate to go private" and said the company "would be better off private."

Herbalife shares have traded up more than 2 percent following the Icahn comments.



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