Clearly Herbalife's intent was to take the company private to avoid public scrutiny of the FTC impacts in the US. This was a course of action predicted by many including myself. However, nobody (not even Icahn) was willing to pay close to market given the risk over overhang, especially in the US and China. Being masters of manipulation Herbalife has spun a story about how a large Private Equity firm sees HLF as overvalued, into a 10% boost for the stock as the result of a buyback with borrowed money, which adds no real value to the company.
Gotta hand it to Herbalife, they are tenacious opponents.They will have enough cash left for a similar offer in October\November to distract from another poor quarter in the US.
The tender offer is between $68, at the most, and $60, at the least, so I have no idea why these buyers are thinking that $68 is in the bag. It could be $60 per share. It could take 2 years to get that $60 per share. Lulz...
Watch the insider sells. This is going to be epic.
Just another Herbalife misdirection. The real story is Herbalife wanted to go private and couldn't find a buyer near the current market price. Bad news for HLF shareholders so they do the modified Dutch auction to put a floor under the stock and ride it out. Couldn't find a buyer, that includes Icahn.
A source close to the matter disclosed on condition of anonymity because they are not at liberty to discuss the matter publicly that the stock is manipulated to rise so that stock can be sold off at the 70.00 mark knowing that it will retrace itself back to the low 60.00 range. Greed is the motivation here. I made this up but, sources close to the matter say I might be correct :o)
When the share price was sitting for a while at $72 - $73, I was wonder why.......common sense told me it was Ackman covering and that was putting a floor on the price......Now I think it was because a few knew there were talks about going private and those folks were buying shares in anticipation of a much higher bid.
I'm a little bit puzzled. The tender offer is $68 max. So why wait for the tender offer while you can sell above $69 now? Do people really believe some PE is going to buy HLF above $68?
it is very obvious the PE firm HLF was talking to for nine months about going private that Icahn was pushing for only made a offer well below 60
For shares tendered under dutch auction, investors will receive Non-Transferable contractual contingent value right (CVR) that will pay out if company is acquired in private transaction within 2 years. So if you sell now, company will payout later. a 2 year guarantee. Shorts are screwed here.
Scam companies like these depends on wall street manipulations. If they take private what will be the value? Market is still paying them 15 times profit. Profit from scamming poor people.
Hilarious! HLF is up today on this terrible news?! This is clearly a desperate move to keep the share price above $60 but it won't last.
I do have to give Fruteman credit for a great trade. I wish I worked at HLF headquarters like he does.
yesterday news bottom line is Icahn can not find any PE firm to bail him out of his HERBALIFE TRAP
Why is this buyback any different from their prior buyback except they agreed to pay a higher price?
Shorts aren't getting their way, expecting the next wave of covering to hit as shorts throw in the towel.
CARL WILL LOOSE BIG IF HE OFFER BUY OUT. IEP WILL GO DOWN TO 20.
How is this trading higher than $68 per share?!
It must have been a exhilarating day for Fancui and Fluteman, and a miserable day for Tex! Haha.
Sold my 1000 $61.50 shares I bought Friday for $67.50 this morning, sold my 1000 $65.90 shares at $68.90. Nice $9k for a couple weeks of work. Will wait for the next opportunity.