Icon Icahn Losing Faith In Herbalife?

(RTTNews) - Carl Icahn Friday said he is lowering his stake in nutritional supplements maker Herbalife.

The billionaire investor announced he will sell 11.4 million of his current 45.7 million shares in the company. Nevertheless, Icahn will still remain Herbalife' largest holder even if all the shares in the offer were taken up.

"Yesterday IEP tendered its Herbalife shares into the Company's self-tender offer. Of the shares we tendered, at most only 11.4 million could possibly be purchased in the tender, which would still leave us as the Company's largest shareholder with at least 34.3 million shares," Icahn wrote in a securities filing.

"For almost six years, we have been one of Herbalife's strongest, most loyal supporters; we stood by the Company through a half-decade long short-selling campaign; and we never sold a share, even after our investment doubled. But, given that our Herbalife investment has become an outsized position, representing approximately 24% exposure to total NAV, it is only prudent for IEP to reduce its exposure."

Icahn said since taking a stake in Herbalife in 2012, he and his firm were able to create more than $7 billion for shareholders.

Icahn had voiced his support for Herbalife when the company waged battle with short-seller Bill Ackman, who alleged that Herbalife was a pyramid scheme.

"We believe Herbalife's business is stable, the short-sellers have largely exited, and the company is well-positioned for the future," Icahn said Friday.