Herbalife Ltd. (NYSE: HLF) shares have traded down
some 2 percent ahead of an important news item after the close Thursday: the company's fourth-quarter earnings report.
But something else could be in the waiting with the company's results.
Amid a long-held stake by notable activist investor Carl Icahn, some investors have recently viewed Herbalife strategically -- most
notably via either M&A or some kind of large-scale buyback.
Bottom line: Herbalife is either about to get very interesting, or very boring.
Below are a couple scenarios which could be announced after the close.
A Tender Or Buyback
If the company decides a buyback of shares via a tendered offer is most appropriate for shareholders right now, Icahn's
influence maybe removed. As a lot of the exciting stuff in Herbalife has surrounded Icahn's involvement, his separation may mean
quiet times for company shareholders ahead.
M&A
If Herbalife discloses some kind of transformational acquisition, the excitement in Herbalife could remain for some time.
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