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Herbalife to Buy Back $266 Million in Shares From BofA

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May 7 (Bloomberg) -- Herbalife Ltd., which suspended its dividend last month to increase share repurchases, agreed to buy back $266 million of its stock from Bank of America Corp.

The total number of shares repurchased will be determined by the average volume-weighted price during the buyback program, which will be completed by the end of the second quarter, Cayman Islands-based Herbalife said today in a statement. The shares will then be retired.

Herbalife, the nutrition company that hedge fund manager Bill Ackman has accused of being a pyramid scheme, got a vote of confidence in the buyback plan last month from Carl Icahn, its largest shareholder. Icahn, who owns about 17 percent of Herbalife, called the dividend decision a “great move” on his Twitter account, saying it “confirms confidence in the future.”

Herbalife, which is run from Los Angeles, rose 3.9 percent to $61.88 at the close in New York. The shares have declined 21 percent this year.

Herbalife has repeatedly denied Ackman’s accusations.

To contact the reporter on this story: Duane D. Stanford in Atlanta at dstanford2@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net Kevin Orland

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