How Will the Herbalife Battle End?

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Nov. 22 (Bloomberg) -- Cristina Alesci reports on the performance of Herbalife. She speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Herbalife against bill ackerman -- no ackman?

You said it in the introduction.

He increased his stake to 6.4%. he is saying, i will potentially take part in a take private of this company.

He has a pretty impressive track record when it comes to consumer products.

He knows what consumers want.

His involvement is much different than when you talk about a traitor or anybody interested in making a quick buck.

He cannot discount the fact that that may be his ultimate in game.

He is making a strategic push.

Does herbalife hit the model of a leveraged buyout target?

He is willing to take part in a leveraged buyout.

That means he needs partners.

If you look at what the premium is going to be at the end of the day, you need to raise $1.8 billion to $2 billion in equity.

If they roll their equity into a new deal, they have to raise $300 million to $800 million.

The company does not have assets, but it has very good cash flow.

The cash flow has been impressive over the last couple of years.

Thanks could get comfortable with that.

Ackman has said no bank was willing to take on the risk because of the potential that his argument turns out to be correct and there is regulatory scrutiny.

Thank you, cristina alesci, our deals reporter.

Time for the call.

The dow is at a record high.

The fed's ready to taper.

Stocks still have room to move higher.

You are starting to look further at valuations.

As you know, we have been overweight in stocks for some time now.

We continue to be overweighted

This text has been automatically generated. It may not be 100% accurate.


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