Herbalife held unsuccessful sale talks
Posted August 21, 2017 7:00 am
NEW YORK (AP) - Herbalife says that it was in talks to be acquired and taken private, but that those negotiations ended last week.
The nutritional supplement company said Monday that in response to those talks, it is offering to buy $600 million worth of its shares from existing investors in an auction. Herbalife, which has its U.S. headquarters in Los Angeles, says that investors who sell their shares will get a contingent cash payment if the company is sold within two years. The maneuver, known as a modified Dutch auction, will pay shareholders between $60 per share and $68 per share. The offer ends next month.
Shares of Herbalife Ltd. jumped 9 percent at the opening bell, to $67.78.
CORRECTS TO SAY THAT HERBALIFE IS OFFERING TO BUY $600 MILLION WORTH OF ITS SHARES, INSTEAD OF SELLING $600 MILLION WORTH OF ITS SHARES - FILE - This Wednesday, May 11, 2016, file photo shows Herbalife protein bars at Herbalife's corporate office in Los Angeles. Herbalife says it was recently in talks with a financial institution to become a private company, but those discussions have ended. In response, the seller of weight-loss shakes says it is offering to buy $600 million worth of its shares from existing investors in an auction. Shares of Herbalife Ltd. jumped 8 percent to $67.16 before the stock market opened Monday, Aug. 21, 2017. (AP Photo/Damian Dovarganes, File)
The Associated Press
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