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Billionaire investor Carl Icahn has finally shown his hand in the hedge-fund brawl over Herbalife.
Icahn confirmed yesterday that he has taken a 12.98 percent stake in the controversial nutritional supplements company — directly challenging nemesis Bill Ackman, who has called Herbalife a “pyramid scheme” and is shorting it to the tune of $1 billion.
Icahn’s stake, disclosed yesterday, sent Herbalife stock soaring in after-hours trading. The stock jumped 27.73 percent, to $47.35 — a few dollars below the $50 average price per share Ackman paid to borrow more than 20 million shares.
The Post, citing sources, first reported on Jan. 10 that Icahn had taken an undisclosed stake in Herbalife.
Icahn said in the filing that he had “conducted significant analysis” on the company” and “concluded that the company has a legitimate business model with favorable long-term opportunities for growth.”
Herbalife, which called Ackman’s claims “bogus,” has won the backing of other investors, including hedge-fund manager Dan Loeb, who has an 8.2 percent stake in the company.
Icahn added that he planned to have discussions with management “regarding the business and strategic alternatives to enhance shareholder value, such as a recapitalization or a going-private transaction.”
An Herbalife spokesperson said, “We welcome all parties who see the same value in Herbalife that we do.”
Icahn and Ackman — whose enmity stems from a decade-long real estate investment battle that Ackman won in 2011 — went at each other on live TV two weeks ago. At that time, Icahn raised the possibility of a tender offer for Herbalife, saying “everybody calls back the stock you borrowed. If that happens, the stock goes to 100.”
Ackman retorted: “Carl is free to make a tender offer for the company. … Go ahead and bid for the company.”
Reached last night, Ackman declined to comment.