A Wonder Offer From Herbalife

Need to shed a little cellulite? Bothered by a sluggish intestinal tract? Mark Hughes has just the thing for you. Last year, the 37-year-old founder of Herbalife International Inc. sold $405 million worth of herbal cellulite busters and other such products.

These days, Hughes is gearing up with a different pitch. Herbalife has filed a registration statement for a secondary offering of 5 million shares. Some 75% of the company's 26.5 million outstanding shares are held by insiders. The new issue will include 2 million new shares and some 3 million shares held by Hughes and former sales chief Lawrence Thompson. With its shares now trading near 14 over the counter, Herbalife's portion of the proceeds will be about $28 million. Management says it will use that to fund a catalog business.