Herbalife Criticism
In December 2012, Ackman issued and presented a research report that is critical of Herbalife's multi-level marketing business model, calling it a pyramid scheme. Ackman's has disclosed that his hedge fund, Pershing Square Capital Management has sold short the company's shares directly (not with derivatives) starting in May 2012. Ackman stated that he will donate all of his profits from the trade to charity. Herbalife's management disputes the premise and ensuing conclusion of the report, i.e. that the stock is worth $0.
Ackman's position on Herbalife led to a rancorous showdown on live television with an Herbalife supporter, Carl Icahn. The two men exchanged zingers, very few of them having much to do with Herbalife, for nearly half an hour on CNBC, January 25, 2013. In terms of style, many felt that Ackman sounded calm and informed, while Icahn was aggressive and confrontational.
Read more about this topic: Bill Ackman, Career
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