Herbalife Ltd. (NYSE: HLF) is having an overwhelmingly strong time in the pre-market hours this morning, and for good reason. The company announced two big pieces of news, one surrounding a $600 million self-tender and one surrounding Icahn. Of course, the news led to excitement among investors who are pushing the stock up, prompting an alert from our partners at Trade Ideas. Currently (8:49), HLF is trading at $66.90 per share after a gain of $4.95 per share or 7.99% thus far today.
HLF Gains On Tender Offer And Icahn News
As mentioned above, Herbalife is having an overwhelmingly strong start to the session in the pre-market this morning after releasing a couple of pieces of big news. The first is that the company has announced a $600 million self-tender offer. This comes following news that talks to take the company private have come to an end. In fact, these talks were formally terminated on August 16, 2017. Shortly after, the company's Board of Directors decided that it would provide tendering shareholders with protection, should the company be taken private in the next 2 years. This could result in remaining shareholders potentially being paid a higher price than the self-tender.
In other news, HLF announced that in connection to the tender offer, Carl Icahn and his controlled affiliates that currently own shares in the company as well as Herbalife themselves have entered into an agreement dated August 21st. Under this agreement, Icahn and his entities have agreed not to increase their aggregate beneficial ownership of the company to more than 50% of HLF outstanding shares unless they have agreed to acquire 100% of the company. The company as well as Icahn have also said that they do not intend to tender shares into the above-mentioned tender.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on HLF. In particular, we're interested in following the self-tender as well as learning of any other talks the company may be having with regard to being acquired. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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