Herbalife sinks after largest shareholder Carl Icahn cashes out a chunk of his holdings

Brendan McDermid/Reuters

• Carl Icahn's firm, Icahn Enterprises, said in a filing on Friday that it was tendering up to 11.4 million Herbalife shares.
• Herbalife's stock fell as much as 8% on the news, although it's still up 49% for the year.

Carl Icahn is inching his way out of his Herbalife position.

The activist hedge fund billionaire's firm, Icahn Enterprises, said in a filing on Friday that it was tendering up to 11.4 million of the company's shares. That marks a roughly 25% divestiture of the 45.7 million shares the firm currently owns, although it remains the largest shareholder.

Herbalife's stock tumbled on the news, falling as much as 8%. Shares are still up 49% for the year.

Icahn Enterprises is one of Herbalife's longest-standing shareholders, having first bought shares at the end of 2012. Out of the 29 long-equity positions the firm currently holds, only three have been held longer than Herbalife, the firm said in the filing.

"For almost six years, we have been one of Herbalife's strongest, most loyal supporters," Icahn said in a statement. "We stood by the Company through a half-decade long short-selling campaign; and we never sold a share, even after our investment doubled. But, given that our Herbalife investment has become an outsized position, representing approximately 24% exposure to total NAV, it is only prudent for Icahn Enterprises to reduce its exposure."

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