The latest round of the billionaire battle over Herbalife Ltd.
However, the company also announced the departure of CEO Michael Johnson. Johnson and Herbalife have been under constant fire from Ackman since he took a highly-publicized $1 billion short position in the stock back in 2012. Ackman has argued that Herbalife’s business model is nothing more than a predatory pyramid scheme.
Earlier this year, the
Given the management turnover and the company’s weakening performance in the China market, Icahn may soon be forced to decide between two difficult options: 1) throw in the towel and sell his stake or 2) push to take the company private.
Herbalife short seller Bob Chapman believes Icahn will choose the other route. Chapman told CNBC’s
Ackman has yet to comment on Herbalife following its earning report.
The stock traded recently at $52.88, down 10.5 percent on the day.
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