Herbalife Ltd. (HLF) - Get Report held talks with an undisclosed "prospective financial investor" about taking the company private, Herbalife disclosed in an announcement saying that it will be buying back $600 million in shares.
However, the company said that it formally ended the talks on August 16 and "because these discussions contemplated the possibility of the company being taken private, the board of directors decided to provide tendering shareholders with some protection in the event the company is taken private."
Additionally, the company announced that as part of its share repurchase tender offer, Carl Icahn and his investment group entered into an agreement with the company to not increase its stake in the company above 50% for two years following its tender offer.
Herbalife shares were rising 11.22% to $68.90 Monday afternoon, rising on more than four times its normal daily volume average.
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