Herbalife Ltd. (NYSE: HLF) is getting a very strange move in this activist shareholder battle. Last night we noted that Bill Ackman of Pershing Square was out with its summary document stating its case against Herbalife. It did not just dance around the terms "pyramid scheme" lightly.
Now we have a new shareholder having taking a stake, and it is a rather well-known investor. Dan Loeb of Third Point LLC has taken a stake of 8,900,000 for an 8.24% stake. What is so odd is that Ackman and Loeb are not enemies, and they have had positive dealings between themselves and with others in the past.
Herbalife shares were halted, but what is interesting here is that there is no mention of the intent nor any mention of activist intentions. Is Loeb now just betting against Ackman opportunistically?
Stay tuned. The Herbalife situation is one that went from odd to strange to bizarre. Herbalife shares were halted for an upside tripwire of the NYSE circuit breaker rules.
Filed under: 24/7 Wall St. Wire, Activist Investor, Corporate Governance, Retail, Short Interest Tagged: HLF