Dan Loeb Buys Stake in Herbalife
The deal comes after Pershing Square's Bill Ackman said Herbalife is running a pyramid scheme
Activist investor Dan Loeb is acquiring an 8.24 percent stake in nutritional supplements maker Herbalife Ltd. (NYSE: HLF) through his hedge fund Third Point LLC.
The 8.24 percent stake equates to 8.9 million shares.
The deal, unveiled through a U.S. Securities and Exchange Commission filing, comes one day before Cayman Islands-based Herbalife held an investor presentation in New York to address allegations made by Pershing Square's Bill Ackman that the company is running a pyramid scheme. Pershing Square has reportedly sold about 20 million shares recently.
On Dec. 20, Ackman issued statements that accused Herbalife of inflating its prices and having misleading sales information.
Herbalife’s shares closed at $38.35 on Jan. 8 and traded up after the announcement.
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