Pershing Square Capital Management's Bill Ackman Responds to Carl Icahn's Comments on Herbalife

  Pershing Square Capital Management's Bill Ackman Responds to Carl Icahn's
                            Comments on Herbalife

PR Newswire

NEW YORK, Jan. 24, 2013

NEW YORK, Jan. 24, 2013 /PRNewswire/ --In response to comments made today by
Carl Icahn on Bloomberg Television, William A. Ackman, CEO of Pershing Square
Capital Management, L.P. ("Pershing Square") today issued the following

"On March 1, 2003, on behalf of my former fund, Gotham Partners, I entered
into a contract with Carl Icahn, signed by him, to sell him a 15% stake in
Hallwood Realty Partners. He paid my investors $80 per share and agreed to
what he called "schmuck insurance." The agreement provided that he would pay
my investors an earnout equal to 50% of his profit on Hallwood after he
received a 10% annual return if he "sold or otherwise transferred" his shares
for value within three years. Fewer than 13 months later on April 14, 2004,
HRPT Property Trust acquired Hallwood. As a result, Carl and the other
Hallwood shareholders received $136.16 per share in cash for their shares.

Under the terms of our agreement, Carl owed my investors about $4.5 million.
He refused to pay. I was forced to sue him on behalf of my investors. On
September 6, 2005, the court awarded us summary judgment and found the
agreement to be "clear and unambiguous." He again refused to pay and
appealed. We won on appeal and Carl was forced to post a bond for what he
owed us and appealed again. In general, Carl waited to the last few days to
appeal in order to delay the inevitable. After eight years and Carl's appeals
of the judgment were denied, in 2011 the Court forced Carl to pay my investors
the $4.5 million they were owed plus 9% interest per year from the date of the

After Carl paid my investors, he called me up, congratulated me on winning,
and said that he wanted to be my friend. I told him that I had no interest in
being his friend.

Carl Icahn is a great investor, but, in my experience, he does not keep his

For a copy of the contract agreement between Gotham Partners and Mr. Icahn,
please visit:

About Pershing Square Capital Management, L.P.

Pershing Square Capital Management, L.P. ("Pershing Square"), based in New
York City, is a SEC-registered investment advisor to private investment
funds. Pershing Square manages funds that are in the business of trading —
buying and selling — securities and other financial instruments. Funds
managed by Pershing Square are short the stock of Herbalife Ltd. Pershing
Square may increase, decrease, dispose of, or change the form of its
investment in Herbalife for any or no reason, at any time. Pershing Square
may change its views about or its investment positions in Herbalife at any
time, for any reason or no reason. Pershing Square may buy, sell, cover or
otherwise change the form or substance of its Herbalife investment. Pershing
Square disclaims any obligation to notify the market of any such changes.
Please see the full Disclaimer appearing on website

SOURCE Pershing Square Capital Management, L.P.

Contact: Pershing Square Capital Management, L.P. - Jennifer Burner, D:
+1-212-235-6203, M: +1-352-281-5357,, or Mike
Geller, D: +1-212-729-2163, M: +1-646-567-3596,
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