Bill Ackman's 'death blow' leaves Herbalife unscathed as shares rally
Herbalife jumped more than 20% as Ackman delivered key presentation vowing to destroy the company
Poor Bill Ackman.
The hedge fund billionaire vowed to destroy Herbalife by unveiling what he claimed was an Enron-like web of corruption and fraud as part of a $50 million investigation into its activities.
But his attempt to bring down the nutritional supplement company didn't quite go as planned.
In fact, shares in Herbalife, which sells weight-loss products, rocketed more 20 per cent in New York trading just as Mr Ackman delivered a business presentation on Tuesday, telling his 300-strong audience that he is in it for the long run and Herbalife will fall.
In an emotional speech, Mr Ackman described the company as a "travesty" that preys on minorities and vulnerable clients and claimed that it operates as an fraudulent pyramid scheme, which makes money out recruiting, not selling products.
In response to his presentation, Herbalife insisted that his claim about the fraudulent nature of the nutritional clubs are "completely false and fabricated" and noting that "once again" the activist investor had "overpromised and underdelivered" in his attack against Herbarlife.
"After spending $50 million, two years and tens of thousands of man-hours, Bill Ackman further demonstrated today that the facts are on our side," it added in a statement.
Herbalife, which sells nutrition, weight-loss and skin-care products, has been at the centre of a Wall Street battle between Mr Ackman and Carl Icahn, a billionaire activist investor with a reputation for being a ruthless corporate raider, that goes back to 2012.
At the time, Mr Ackman's Pershing Square hedge fund made a $1 billion short bet against the company- meaning he makes money if the stock falls. His bet pitched him directly against Mr Icahn who took a “long” position in the company, sparking a highly-publicised feud between the two.
- 1 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 3 Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
- 5 Google search history can now be downloaded in its entirety, mass embarrassment expected
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...