Herbalife also said in a statement Monday morning that it was offering a "modified Dutch auction" — buying back $600 million of shares at $60 to $68 a pop. The deal offers those who sell back their stock to get paid should Herbalife be acquired within two years.
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Herbalife held talks to go private, and its stock is jumping (HLF)
Herbalife shares were up about 8% Monday morning after the company disclosed that it had discussions to go private.
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The company said it decided to offer the stock tender after holding discussions with a private investor, though those talks were terminated August 16.
Carl Icahn and his entities are the largest shareholders, and are not allowed to increase their ownership above 50% of Herbalife's standing shares unless they buy all of them, the statement added.
Icahn and Herbalife's board and executive officers do not plan to tender their shares, the company said.
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The surge in Herbalife's stock price is a blow to Bill Ackman's Pershing Square Capital, the activist fund that went short on the supplements company five years ago while accusing it of operating as a pyramid scheme. Pershing Square's bet has largely gone the wrong way since it was put on.
A Pershing Square spokesman declined to comment. Icahn couldn't immediately be reached for comment.
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