It Wasn’t Bill Stiritz Who Deserted the Carl Icahn Camp of Herbalife Ltd. (HLF)

Pyramid scheme or no pyramid scheme, Herbalife Ltd. (NYSE:HLF) has been in dire straits lately. The company has been the center of a bitter rivalry between the two prominent investors, Carl Icahn of Icahn Enterprises LP (NASDAQ:IEP), and Bill Ackman of Pershing Square, on whom even live television couldn’t put a rein  as both contenders used the platform to malign the other.

Given this backdrop it is particularly interesting to see how this particular situation involving of Herbalife Ltd. (NYSE:HLF) develops, or to put it more simply, which one of the two emerges out as a winner from this ugly mess. The first strike for Bill Ackman would be when one of the investors believing in Carl Icahn’s investment thesis defers and sells his shares. In connection with the latest dip in Herbalife Ltd. (NYSE:HLF)’s stock price, it was rumored that Bill Stiritz, who is the fourth largest stakeholder in the company has finally given in and decided to cut his losses. However, Bloomberg‘s Duane Stanford revealed quite the opposite. Stritz is apparently staying put despite losses amounting to a couple of hundred million dollars.

“[…] There is a heck of a battle going on behind the scenes, whisper campaigns, and anytime the stock makes a significant movement, you see any number of rumors either way but it seemed to be, you know, possible that there could be a major seller and everybody wanted to know whether it was Bill Stiritz. Apparently its not […],” informed Stanford.

He further elaborated that Stiritz is a staunch believer in Herbalife Ltd. (NYSE:HLF)’s solution for obesity through its protein shakes. However, Ackman would strongly disagree with that claim and at one point even had a billion dollars riding on Herbalife Ltd. (NYSE:HLF) to crash and burn.

The segment on Bloomberg also showed an earlier interview with Bill Ackman on the same subject, and Ackman categorically claimed that the business is in a bad shape owing to the fact that it is getting extremely hard for the management to recruit distributors, since the truth about the company’s product is out.

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