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.