Carl Icahn
Photograph by CNBC NBCU Photo Bank via Getty Images
By Reuters
November 4, 2016

Activist investor Carl Icahn has raised his stake in Herbalife Ltd to 23.1 percent as of Nov. 3, according to a regulatory filing on Thursday.

Icahn had reported a 20.78 percent stake in the company in August.

Herbalife said on Tuesday that Chief Executive Michael Johnson would step down next year and be replaced by Chief Operating Officer Richard Goudis, a choice Icahn said he fully supported.

Johnson’s departure caps a tumultuous 13-year tenure that was marked by a bitter fight with activist investor William Ackman.

Ackman and Icahn have opposing bets on Los Angeles-based Herbalife. Ackman for years has accused Herbalife of running a pyramid scheme and bet that the stock would fall to zero.

Icahn famously called Ackman a “liar” and a “crybaby” in a CNBC interview in 2013. They have since made up.

 

The U.S. Federal Trade Commission opened a probe into Herbalife in 2014 following Ackman’s allegations.

The company, in July, agreed to pay $200 million and change the way it does business to avoid being labeled a pyramid scheme by regulators.

SPONSORED FINANCIAL CONTENT

You May Like

EDIT POST